Closed until Thursday, Schedule a callback

Lifetime mortgage

  • A lifetime mortgage is a type of equity release

  • It's a loan secured against your home

  • We'll explain the benefits and drawbacks

See what you could release tax-free

Use our calculator if you:

  • Are a UK homeowner aged 55+

  • Own a property worth £70,000+

Calculate now

What is a lifetime mortgage?

A lifetime mortgage is a type of equity release and a loan secured against your home. It lets homeowners aged 55 or over release some of the tax-free funds tied up in their property. It can be an effective way to boost retirement finances without needing to sell or move.

What can I use a lifetime mortgage for?

The money you unlock through a lifetime mortgage is tax-free. You can use it in several ways, such as:

Repay existing mortgage

Support loved ones

Boost retirement finances

Make home improvements

Ready to get started?

See how much you could release tax-free with Key's award-winning equity release service

Calculate now

ⓘ Be financially aware. Equity release comes with drawbacks which are important to think about.

How does a lifetime mortgage work?

A lifetime mortgage works by allowing you to release tax-free cash from the value of your home while continuing to live there. You keep full ownership of your property and can stay for as long as you choose. Interest is added to the amount you release, and there are usually no monthly repayments to make unless you choose to.

The loan, plus compound interest, is typically repaid when your home is sold after you (or the last homeowner) pass away or move into long-term care. There are two ways to access your money: a lump-sum plan or a drawdown plan.

Lump sum lifetime mortgage

  • Release funds as a single amount

  • Interest builds up on the full amount from day one

  • For homeowners aged 55+ with a property worth £70,000+

Find out more

Drawdown lifetime mortgage

  • Access funds when needed after an initial release

  • Only pay interest on what you've released

  • For homeowners aged 55+ with a property worth £70,000+

Find out more

Both options let you stay in your home for life and access tax-free cash. You can also choose to make voluntary repayments (subject to criteria) to help manage the overall cost of borrowing.

Benefits and drawbacks of a lifetime mortgage

Watch our video to learn more about the benefits and drawbacks of equity release and see if it could be right for you.

Video transcript (pdf)

If you're looking for ways to release funds from your home, you may be wondering: is equity release the same as a lifetime mortgage? A lifetime mortgage is a type of equity release, allowing you to free up tax-free funds in later life.

The other type of equity release is a home reversion plan. This involves selling all or part of your home for less than the market value to a provider in exchange for a lump sum. All lifetime mortgages we recommend let you keep full ownership of your home.

Read more about lifetime mortgages vs equity release.

Explore our tools and guides

Handy lifetime mortgage tools

More on lifetime mortgages & equity release

Is a lifetime mortgage safe?

Lifetime mortgages we recommend come with a range of safeguards and protections. This means you can access some of the funds tied up in your home with confidence and peace of mind.

Key is a proud member of the Equity Release Council, the organisation that sets high standards for the equity release market. Their standards keep lifetime mortgages safe, secure, and transparent.

Is equity release safe? Cover image

Watch our video to find out about the safeguards and protections included with the lifetime mortgages we recommend.

Useful links:

What lifetime mortgage interest rates are available?

Lifetime mortgage interest rates vary depending on your plan and circumstances. They're fixed for the life of your plan.

Lifetime mortgage representative example

6.23% AER

Lowest rate with Key

7.22% AER

Rates most Key customers received, or less

7.54% APR

Overall cost for comparison

All rates correct as of 1st December 2025. This is based on customer data from the last 60 days, apart from Key’s lowest rate. Interest rate received and plan features are subject to eligibility. Ask for a personal illustration.

  • AER stands for Annual Equivalent Rate. It shows what the interest rate would be if the interest compounded each year.

  • APR stands for Annual Percentage Rate. It's the cost you pay each year to borrow money, including fees, expressed as a percentage.

 

Calculate now

Learn more about lifetime mortgage costs

Managing lifetime mortgage costs

More info on lifetime mortgage costs

Is a lifetime mortgage right for me?

If you're thinking about a lifetime mortgage, it's important you have all the facts. You have to get advice from a qualified equity release adviser before you apply for a lifetime mortgage. It’s a regulatory requirement. Your adviser will review all your later life finance options to find the most suitable one for you. And if a lifetime mortgage isn't right for you, we'll tell you.

Why choose Key as your lifetime mortgage adviser?

Key is a specialist, award-winning lifetime mortgage adviser for the over 55s. We could help turn your property wealth into a way to help fund your retirement. We research all later life mortgage options and provide trusted, expert advice that's personal to you.

Trusted

  • We've won 80+ awards 

  • We're rated 'Excellent' on Trustpilot with 17,000+ reviews

  • We're the UK's most trusted equity-release specialist

Expert

  • Key is a regulated equity release expert

  • We're proud members of the Equity Release Council

  • We've helped 1 million+ see if it was right for them

Protected

  • Equity release advising and arranging is covered by the FSCS

  • You'll be protected by up to £85,000

  • Key could help you access some of your home's equity in a safe and transparent way

ⓘ Our £1,699 advice fee is only payable if you go ahead with a lifetime mortgage.

Trustpilot
Trustpilot

Next steps to start your lifetime mortgage journey

Calculate online

  • Quick and easy to use

  • Instant results

  • No obligation to go ahead

Calculate now

Prefer to speak to us?

  • Speak to our friendly experts

  • Get your questions answered

  • See if it could be right for you

Call us on 0808 252 9170

Switching plans

  • Already taken out a lifetime mortgage plan?

  • Switch with Key and you could release more

  • Find a plan that's better for you

Switch to Key

Your other options with Key
If another product is more suitable, we'll refer you to a different specialist adviser within Key Group who can help. If you go ahead, you'll never be charged more than our standard fixed advice fee of £1,699, even if their fee is higher. Key offers alternatives to a lifetime mortgage such as a retirement interest-only mortgage or retirement repayment mortgage.

Other options to think about
It's important to know your other options before going ahead with a lifetime mortgage. These include: home reversion, downsizing, unsecured lending, using existing assets, or support from friends or family.

We're here to help
Our friendly equity release team is available: Mon-Thurs 9am-8pm, Fri 9am-5pm, Sat - Sun closed.

All about lifetime mortgages - FAQs

To be eligible for a lifetime mortgage through Key, you must be a UK homeowner:

  • Aged 55+ (including all joint applicants)

  • With a property worth £70,000+

Calculate now

In order to qualify for the lifetime mortgages we recommend, you must be a UK homeowner aged 55+ with a property worth £70,000+.

If you're not eligible for a lifetime mortgage now, try our later life mortgage finder.. We could still help you take control of your retirement finances.

You may want to repay some of your lifetime mortgage early and reduce your total cost of borrowing.

Subject to criteria, you have the option of making ad-hoc repayments of up to 10-12% of the initial amount you've borrowed each year.

A lifetime mortgage is designed to run for the rest of your life. Further repayments, including repaying in full, may incur early repayment charges. Your adviser will explain this in detail so you know what your options are.

We make your journey as quick and easy as possible. Our applications complete within 8-12 weeks on average.

As each application is unique, timescales aren't guaranteed. Applications for a lifetime mortgage include the following steps:

  1. Use our free UK lifetime mortgage calculator: It's free and no-obligation - try it now

  2. Speak to an adviser: You then speak to one of our qualified equity release advisers on a date and time that works for you

  3. Discuss legalities: You'll discuss the legalities with your independent solicitor

  4. Receive money: You'll receive your money to spend in a variety of ways

Page last updated: Monday 24 November 2025

We use some essential cookies to make our website work properly.

We’d also like to set additional cookies to help us improve our website, tailor marketing and provide a more personal experience.