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What is a lifetime mortgage?

A lifetime mortgage is a type of equity release and is a loan secured against your home. It is a way of unlocking some of the money that is tied up in your property.

With a lifetime mortgage the money you release is tax-free and can be taken as a lump sum or a smaller initial amount followed by smaller releases at a later date.

You’ll continue to own your own home and with plans that meet the Equity Release Council's standards there’s a no-negative-equity guarantee, meaning you’ll never owe more than your home’s worth. A lifetime mortgage may result in limited or no property equity remaining.

Many find the main benefit is that typically you don’t have to make any monthly repayments unless you wish to, as the loan plus compound interest is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long term care. 

How does a lifetime mortgage work?

The value of your home, minus any outstanding mortgage and any other existing loans secured against it, is the equity you have in your property. This equity is often passed on as an inheritance, however, people are tapping into some of this wealth with a lifetime mortgage to help boost their retirement finances.
With a lifetime mortgage you could release up to 55% of your property’s value in tax-free cash, dependent on your age and property value.
There are several features available on different lifetime mortgage plans to help you find a plan to suit your needs. If you wish to pay some of it back, you can manage the size of the loan through capital or interest repayment options. Other plans give you cashback. Then there are plans with further safeguarding features including inheritance and downsizing protection.


How do I know which one is right for me?

Mortgage Advice Bureau Later Life offer lifetime mortgage products from a carefully selected panel of providers to offer a range of plans designed to meet your needs. Your adviser will talk you through your options and recommend a plan based on what’s important to you.

Find out more

Whether you would like to find out some more information in your own time or discover straight away how much you could unlock from your home, we have a range of online tools to help.

Find out how much you could release from your home with our simple online calculator.

The benefits

  • You can unlock cash from your home, tax-free, to help meet your needs in later life
  • You’ll always retain full ownership of your home and can stay in it for as long as you wish
  • You can choose to make reduced or no monthly repayments to suit your circumstances
  • You’ll never owe more than your home’s worth
  • You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges

Potential drawbacks

Your equity release adviser will also outline the following important things to think about:

  • A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly
  • Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
  • Equity release may leave you with limited or no property equity remaining
  • Equity release will reduce your financial options in the future
  • A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply

Your other options

Before deciding on equity release, our advisers will make sure you're aware of some of your other later life finance options such as retirement interest-only or retirement payment mortgages.

See if equity release is right for you

Equity release costs

Knowing the costs associated with equity release and how to help manage them is important.

Compound interest explained
How much does equity release cost?

Things to consider

Because we play by the book we want to tell you 

  • Mortgage Advice Bureau Later Life offer lifetime mortgages only, which is a loan secured against your home.
  • We understand equity release isn’t for everyone, and we’ll never say it’s the right option for you unless we’re certain.
  • As part of our advice process, we'll consider whether retirement interest-only (RIOs) and other mortgages may be suitable and can arrange advice on these if appropriate. Advice fee will vary.
  • Unless you decide to go ahead, our service is completely free of charge, as our fixed advice fee of £1,295 would only be payable on completion of a plan.