FAQ

A lifetime mortgage is a type of equity release available to homeowners aged 55 and over. It is a way to borrow money secured against your home while retaining ownership of the property.The loan, together with any interest that has been added, is usually repaid when the last borrower dies or moves permanently into long-term care.If you'd like to understand more about how a lifetime mortgage works, visit my guide: How Does Equity Release Work? Understanding Lifetime Mortgages.

A lifetime mortgage is secured against your home, similar to a traditional mortgage. You can choose to receive funds as a lump sum, in smaller amounts over time, or a combination of both, depending on the product selected.Interest is added to the loan each year on the amount borrowed, however, you can make optional repayments to cover it, and stop the balance increasing.There are plans that may allow you to make voluntary payments subject to certain limits. Early repayment charges may apply above a set value.You can find a more detailed explanation in my guide: How Does Equity Release Work? Understanding Lifetime Mortgages.

Yes. With a lifetime mortgage, you remain the legal owner of your property.As long as you comply with the terms and conditions of the mortgage, you can continue living in your home for the rest of your life or until you move permanently into long-term care.

Lenders require applicants to be at least 55 years old.If a property is jointly owned, both applicants must meet the lender's age criteria.

The amount available depends on several factors, including:Your ageThe value of your propertyThe lender's criteria In general, older applicants may be able to access a higher percentage of their property's value.

Yes. Before a lender makes a formal offer, an independent valuation of the property will be carried out.This helps determine how much may be available to borrow and confirms that the property meets the lender's requirements.

Many UK properties are acceptable security for a lifetime mortgage, including houses, bungalows and some flats.However, acceptance depends on the lender's property criteria, construction type and condition of the property.

Yes. It is possible to take out a lifetime mortgage if you currently have an existing mortgage, but this will need to be repaid as part of the arrangement.You could use the funds released to do this.

Yes. Joint lifetime mortgage applications are common.The mortgage term ends when the last surviving borrower dies or moves permanently into long-term care.

The money released from a lifetime mortgage can be used for many different purposes.Common reasons include:Home improvementsRepaying an existing mortgageSupporting family membersPurchasing another propertyEnhancing quality of lifeHolidaysLarge purchases such as a car.

Many modern lifetime mortgages offer a drawdown facility.This allows you to take an initial amount and then access further funds in the future if required, subject to the terms of the plan

While timescales vary, a typical lifetime mortgage application may take between six and ten weeks from initial enquiry to completion.This can depend on factors such as property valuation, legal work and lender processing times.You can find more information about the different stages involved on my Thinking About Applying for a Lifetime Mortgage? Here's What Happens Next page.

No. One of the key features of lifetime mortgages is that there is no requirement to make monthly repayments.Instead, the interest is added to the loan and repaid when the mortgage ends.

Yes. There is the option to make voluntary repayments, subject to product terms and limits. Early repayment charges may apply above a set value.Making voluntary repayments will reduce the overall cost of borrowing over time.

Voluntary repayments on a lifetime mortgage are optional.If you choose to stop making them interest will be added to the outstanding balance.

The interest rate depends on the lender and product selected.Most lifetime mortgages have a fixed interest rate for life, giving certainty about how interest will be calculated throughout the duration of the mortgage.

If no repayments are made, interest is added to the outstanding balance.This means interest is charged on both the original loan and previously added interest, which will cause the balance to increase over time.Your adviser should provide personalised illustrations showing how this will affect your circumstances.

Lifetime mortgages are portable, meaning they can potentially be transferred to another property in the future.The new property must meet the lender's lending criteria at the time of the move.

You have the option to downsize and repay some or all of the lifetime mortgage if you choose, however this could incur early repayment charges.Some plans include downsizing features which may allow the lifetime mortgage to be repaid without an early repayment charge in specific circumstances.The availability of this feature depends on the lender and product selected.

There will be costs associated with arranging a lifetime mortgage, including:Advice feesValuation fees (where applicable)Solicitor feesLender arrangement fees Your adviser should explain all applicable costs before proceeding.

Some lifetime mortgages include early repayment charges if the loan is repaid sooner than expected.The way these charges are calculated varies between products, so it is important to understand the terms before proceeding.

When the last borrower dies, the property is usually sold, and the proceeds are used to repay the outstanding mortgage balance.Any remaining proceeds belong to the estate.

If the last remaining borrower moves permanently into long-term care, the mortgage will become repayable.The property is typically sold and the proceeds used to repay the outstanding balance.

Some lenders offer features that may allow a proportion of the property's future value to be protected.  This will reduce the amount available to you.Availability and eligibility depend on the lender and product selected.

No. A lifetime mortgage will not be suitable for everyone.There are advantages and disadvantages to consider, and alternative options may be more appropriate depending on your circumstances.This is why regulated advice is required before proceeding.Before proceeding, it may also be helpful to explore the alternatives that may be available to you on my Alternatives to Equity Release page.

Lifetime mortgages are regulated mortgage products.A qualified adviser is required to assess your circumstances, explain the features and risks, consider available options and determine whether a lifetime mortgage is suitable for your needs.You can find out more about my background and approach to advice on my About Me page.

Independent legal advice is a requirement when taking out a lifetime mortgage.Your solicitor will explain the legal implications of the mortgage and ensure you understand the commitments you are making before completion.

The advice process typically includes:Understanding your objectives.Gathering information about your circumstances.Explaining how lifetime mortgages work.Discussing benefits and risks.Considering available options.Providing a personalised recommendation if appropriate.Supporting you through application and completion.If you'd like to understand the process in more detail, visit Thinking About Applying for a Lifetime Mortgage? Here's What Happens Next.

Lifetime mortgages from members of the Equity Release Council include a No Negative Equity Guarantee.This means that when the property is sold after the mortgage ends, neither you nor your estate will be required to repay more than the sale proceeds of the property, provided the terms and conditions of the mortgage have been met.

Will a lifetime mortgage affect my entitlement to benefits?A lifetime mortgage may affect your entitlement to means-tested benefits now or in the future.This is because any money released and retained as savings or investments may be taken into account when entitlement to certain benefits is assessed.The impact will depend on your individual circumstances and the benefits you receive, so it’s important to contact the relevant parties such as Department of Work and Pensions, your local authority or The Pension Service so that your fully informed.

A lifetime mortgage will not be suitable for everyone.Things to consider include:If you do not make payments to cover all of the interest charged, interest will be added to the outstanding balance and the amount owed will increase over time.A lifetime mortgage will reduce the value of your estate.Equity release may affect your entitlement to means-tested benefits now or in the future.Early repayment charges may apply if you repay the mortgage sooner than expected.There may be other options which better suit your circumstances. Advice is required before proceeding with a lifetime mortgage.  A qualified adviser will assess your circumstances and determine whether a lifetime mortgage is suitable for your needs.

Depending on your circumstances, there may be alternatives to a lifetime mortgage.These could include:Downsizing to a different property.Using existing savings or investments.Assistance from family members.A personal loan or a different type of mortgage.Assessing any pension funds. The options available will depend on your individual circumstances. A qualified adviser should consider appropriate alternatives before recommending a lifetime mortgage.You can read more about the options available on my Alternatives to Equity Release page.

A lifetime mortgage is secured against your property, and you continue to own your property 100% and therefore benefit from any potential future growth in the property.Provided you comply with the terms and conditions of the mortgage, you have the right to remain in your home for the rest of your life or until you move permanently into long-term care.Your adviser and solicitor will explain the terms and conditions of the mortgage before you proceed.

Equity release is a term used to describe different ways of accessing money from the value held within your home.The two main types of equity release are:Lifetime mortgagesHome reversion plans A lifetime mortgage is the most common form of equity release and allows you to retain 100% ownership of your home.I advise on lifetime mortgages only.

Yes.Lenders have their own eligibility criteria and will assess factors including:Your age.The value of your property.The type of property.The condition of the property.Any existing borrowing secured against the property. Meeting the minimum age requirement does not automatically mean that a lifetime mortgage will be available.

The overall cost of a lifetime mortgage will depend on the product selected and your circumstances.Costs may include:Advice fees.Solicitor fees.Valuation fees where applicable.Lender arrangement fees.Interest charged on the mortgage. If you do not make payments to cover all of the interest charged, interest will be added to the outstanding balance and the amount owed will increase over time.Your adviser should explain all applicable costs before you proceed.

A drawdown lifetime mortgage allows you to release an initial amount of money and keep additional funds available for future use, subject to the terms of the plan.Interest is only charged on funds that have actually been released.If you draw funds in the future, interest will be charged at the prevailing rate at that time, which could be higher than when you released funds initially.

Some homeowners use funds released from a lifetime mortgage to support family members financially.Examples may include:Helping with a property purchase.Supporting home improvements.Assisting with education costs.Helping with other significant life events. Before proceeding, it is important to consider your own future financial needs.A lifetime mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits now or in the future.

Yes.Funds released from a lifetime mortgage can be used to repay an existing mortgage.Equity release requires paying off any existing mortgage.If there are early repayment charges on your existing mortgage, these should be considered before proceeding.

Before proceeding with a lifetime mortgage, you may wish to consider:Why you want to release funds.How much money you need.Whether alternative options are available.The impact on your estate.The impact on any means-tested benefits you receive.Whether you may wish to move home in the future.Whether you would like family members involved in discussions. A lifetime mortgage is a long-term commitment, and advice is required before proceeding. There may be other options which better suit your circumstances.  A qualified adviser will assess your circumstances and determine whether a lifetime mortgage is suitable for your needs.

I will personally advise you throughout the process. You can read more about my background and experience on my About Me page.