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Lump sum lifetime mortgages

Available to homeowners over the age of 55, with a lump sum lifetime mortgage you unlock some of the equity in your home as a single, one-off amount. 

Many people choose this type of equity release plan if they have a large expense they need it for. Uses include funding home improvements, helping loved ones with a financial gift and paying off existing debts.

Although all lump sum lifetime mortgages will give you that one-off amount, there are still many different plans available. The different plans will offer different features, so you can find one that suits your needs.

 

Lower, fixed interest rates

A lump sum lifetime mortgage could offer lower interest rates, meaning you could potentially save thousands on the compounding interest.

Your interest rate will be fixed for life too.

 

No monthly repayments

You won’t have to make monthly repayments, typically the loan, plus roll-up interest, is repaid when the plan comes to an end. There are plans that offer repayment options too, if that is something you would prefer.

 

No negative equity guarantee

We only ever recommend plans that meet the Equity Release Council standards and come with a no negative equity guarantee. This means the amount you owe will never be more than your home is worth.

You’ll still own your own home and typically the plan won’t come to an end until you, or the last remaining borrower, either passes away or enters long-term residential care.

 

Additional features

Some plans offer inheritance and / or downsizing protection. Depending on what you want or what your circumstances are, your adviser can discuss with you if they could be of benefit.

Downsizing protection enables you to move home and repay your lifetime mortgage without having to pay an early repayment charge, if your new property doesn’t meet the lender’s criteria. This is usually after five years of taking out your plan.

Inheritance protection lets you ring-fence a percentage of your home's future value, this is then able to be passed on as a guaranteed inheritance. This is regardless of how much the interest accrues.

 

Facts about a lump sum lifetime mortgage

- Receive a tax-free cash lump sum
- With a lifetime mortgage, you still own your own home
- You can stay in your home for as long as you want, subject to your plan’s terms and conditions
- With a lifetime mortgage there are typically no monthly repayments to make as the loan, plus roll up interest, is repaid when the plan comes to an end
- You’ll never owe more than the value of your home with any plan that meets the Equity Release Council’s standards
- You can move home with any plan that meets the Equity Release Council’s standards subject to provider criteria.
- You could guarantee an inheritance for your beneficiaries with some plans
- A lifetime mortgage is a loan secured against your home
- Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
- Mortgage Advice Bureau Later Life offer lifetime mortgage products from a carefully selected panel of providers
- You should always think carefully before securing a loan against your property

Unless you decide to go ahead, our service is completely free of charge as our usual advice fee of 1.5% of the amount released would only be payable on completion of a plan, subject to a minimum advice fee of £695.


Find out how much you could release from your home with a lump sum lifetime mortgage. Try our free, simple-to-use equity release calculator for an instant estimate