Mythbuster: "My home will be owned by somebody else"

Who owns the property with a lifetime mortgage?

With a lifetime mortgage, you remain the owner of your home. This type of equity release allows you to borrow against the value of your property while keeping full ownership.

This means you can continue to decorate and make home improvements as you normally would. In fact, many people choose equity release to help pay for home improvements. As the homeowner, you'll also remain responsible for maintaining your property.

It's important to understand that the amount you owe can increase over time because interest is added to the loan. This may reduce the value of your estate and could affect your entitlement to means-tested benefits. A lifetime mortgage is a long-term commitment and won't be the right option for everyone, so it's important to consider whether it suits your individual circumstances.
 

Can you lose your house with a lifetime mortgage?

No, equity release - through a lifetime mortgage - won’t cause you to lose your home, provided you follow the agreed terms and conditions. You remain the legal owner and can stay in your property for life or until you move into permanent care. The loan, plus any compound interest is typically repaid from the proceeds of the property's sale.
 

Stay in your home for life

No matter which type of equity release plan you choose, as long as it’s one that meets the Equity Release Council standards, you’ll be guaranteed the right to stay in your home until the plan comes to an end. This is usually when you, or the last remaining applicant either passes away or enters long-term care.

All of the plans we recommend meet the Equity Release Council standards and come with the guarantee you can remain in your home. If you are considering equity release we recommend that you read through is it right for me?