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Lifetime mortgages

Unlock tax-free cash out of your home and retain ownership without the stress of moving
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What is a lifetime mortgage?

  • A lifetime mortgage is the most popular form of equity release and allows homeowners aged 55 and over to release tax-free funds tied up in their home
  • You can do it in two ways, either as a single lump sum or, following an initial release, in smaller amounts as and when needed, known as a drawdown
 

How does a lifetime mortgage work?

  • A lifetime mortgage is a loan secured against your home, typically repaid when you or the last surviving applicant passes away or enters long-term care
  • ​You retain full ownership of your property and there are typically no monthly repayments
  • The amount you could release depends on your age, health and the value of your home
 

Could you be eligible?

  • Aged 55 or over
  • ​Property value of over £70,000
  • You will also need to release a minimum of £10,000
  • Your owned property must be in the UK and your main residence

Equity release benefits

All our equity release advice relates to Key lifetime mortgages only

  • 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 with a Key lifetime mortgage
  • You can choose to make reduced or no monthly repayments to suit your circumstances
  • You’ll never owe more than your home’s worth with a Key lifetime mortgage
  • 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

Equity release drawbacks

It's also important to think about the following

  • 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

Things to consider

Your specialist equity release adviser will explain:

  • All our equity release advice relates to Key lifetime mortgages only - a loan secured against your home
  • Equity release will reduce your estate’s value and may affect your entitlement to means-tested benefits
  • A lifetime mortgage may result in limited or no property equity remaining and will reduce your financial options in the future
  • 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
  • Our fixed advice fee of £1,299 is only payable on completion
Page last updated: Thursday 19 December 2024

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