How does it work?

A lifetime mortgage is a type of equity release that involves securing a loan against your property to receive a tax-free lump sum or regular income for your discretion.

The amount you can borrow will depend on the value of your property (minimum £60,000) and your age (plans can be taken out as young as 55).

Depending on your circumstances they can be set up where you can make full or reduced monthly interest payments or you might not want to make any monthly payments. Depending on the lender, you may be able to make partial repayments without a penalty.



  • Ability to take out plans starting at the age of 55
  • The option to receive either a lump sum of cash or regular income
  • Retaining ownership of your home, allowing you to benefit from any increase in property value
  • Availability of loans with a 'No Negative Equity' guarantee
  • Certain plans offering the ability to secure an inheritance for your family



  • Decrease in the inheritance amount
  • Potential for higher interest rates compared to standard mortgages due to the long-term nature of the loan, and the possibility of the loan amount rapidly escalating due to compounded interest
  • Impact on tax position and specific state benefits
  • Potential application of early repayment charges

While interest-only lifetime mortgages are an option where you make monthly interest payments, some lifetime mortgages feature 'rolled up' interest. With 'rolled up' interest, the accrued interest is settled in a single final payment, combined with the total loan amount, upon the sale of your property, as explained earlier. Of course you can choose not to make any repayments at all, but this will reduce what is left to your estate at the end.


Please note:

Our Equity Release is arranged by introduction to Viva Retirement


Lifetime Mortgages and Home Reversion plans are a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.

01332 382917
4 St Georges House,
Vernon Gate,
DE1 1UQ.