Unlock some of the equity in your home
The Lifetime Mortgage is a special kind of loan for homeowners aged sixty and over. Although it’s secured on your property, there are no monthly payments to make and it is designed to help you remain in your home for as long as you wish.

A Lifetime Mortgage allows you to benefit from the financial investment you’ve made in your house with absolutely no worries of having to give it up.

Interest will be added to your loan and the full amount is paid back when your home is eventually sold following your death (or the death of the second borrower if it is a joint application) or if you move into long-term care or sheltered accommodation.

A lifetime mortgage gives you a cash lump sum now, or regular income for the rest of your life. You take out a loan secured against your property. Interest is charged on this loan, but it 'rolls up' - that means it is accumulated over time, and is not repaid until the house is sold when you die or move into long-term care.

The amount you can borrow depends on your age, and the value of your property. A lifetime mortgage is a long-term commitment, and if you change your mind you will have to pay an early repayment charge, which could run to thousands of pounds. So it is important that you know exactly what you're doing before you sign on the dotted line.

And bear in mind that, if you receive means-tested benefits, for example, the cash injection you get from a lifetime mortgage could render you ineligible.

As a result, most lifetime mortgage providers recommend that you take legal advice before proceeding, and also that you seek independent financial advice. Also using equity release will have a major impact on your estate, so it can make sense to discuss the matter with your family before going ahead.

How Much Can You Borrow with a Lifetime Mortgage?

• The amount offered by different Equity Release providers varies depending on your age (or youngest age if joint) and the amount of interest charged
• Typically schemes offer between 15% - 35% of the value of the home at age 60 or under going as high as 50%-60% if the person is over 70-75
• Built into most schemes is the potential ability to receive further payment as you get older.

To understand the features and risks ask for a personalised illustration.