To be eligible for a lifetime mortgage you need to:

  • Be over 55 years old

  • Have no outstanding mortgage to pay

  • Own a property in good condition

This means a lifetime mortgage could be an option if you are retired and want some extra money to supplement your pension.

You can compare lifetime mortgage rates using our comparison.

How do lifetime mortgages work?

A lifetime mortgage is a way of releasing a lump sum from the equity in your home.

They work by securing a loan against your property. The loan and any interest is repaid when your home is sold, so you do not have to make any monthly repayments.

How much you can borrow depends on your age and the value of your home. You will still own your home, but any interest will be added to the loan until it is repaid.

What are the risks?

When you die or move into care and the loan is repaid, the amount of inheritance you can leave to your family will be much smaller.

It can also come with a number of costs and fees you need to pay. You can find out more about the risks and benefits of equity release here.

What are the alternatives?

If you want to release equity from your home you could also consider a home reversion scheme. These allow you to sell all or part of your home for a lump sum or regular income. Find out how home reversion schemes work here.

Alternatively, you could generate extra retirement income by:

  • Downsizing your home

  • Taking out a secured loan against your property

Here is how to work out whether you should borrow money against your home.

Lifetime mortgages FAQs

Q

Should I get financial advice?

A

You can get advice and a lifetime mortgage quote from a broker. You can decide what option is best by contacting an independent financial adviser.

Q

How much can I get from a lifetime mortgage?

A

This can depend on your age, your property's value, the scheme you use and how much equity you sell.

Q

Could I end up in negative equity?

A

No, lifetime mortgage providers should have a 'no negative equity guarantee', so you will not be asked to pay back more than your home's sale value.

Q

What are the alternatives to a lifetime mortgage?

A

You could raise money by moving to a smaller home, or getting a loan. A financial adviser could help you decide.

Q

What types of equity release scheme can I get?

A

There are two different options, which are a lifetime mortgage or a home reversion scheme. Here is how they both work.

About our mortgage comparison

Q

Who do we include in this comparison?

A

We include lifetime mortgages available through our independent broker, Responsible Equity Release. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.