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.