YOU SHOULD CONSIDER A LIFETIME MORTGAGE IF:

A lifetime mortgage can be a valuable financial solution if you are looking to release equity from your home while maintaining ownership. As a form of equity release, this option is particularly beneficial for those over 55 who need additional funds for retirement or other financial needs.

Here are some key reasons why a lifetime mortgage might be right for you:

1. You are over 55 and need to access equity

If you are aged 55 or older and have built up equity in your property, a lifetime mortgage allows you to release funds without having to move home or make monthly repayments.

2. You want to supplement your retirement income

A lifetime mortgage can provide a financial cushion in retirement, helping to cover:
✔ Living expenses
✔ Medical costs
✔ Travel and lifestyle choices

3. You do not qualify for a conventional mortgage

If a standard mortgage isn’t an option due to:

• Income restrictions

• Age limits

• Credit concerns

A lifetime mortgage offers an alternative way to access the money tied up in your property.

4. You prefer no monthly repayments

Unlike traditional mortgages, lifetime mortgages typically do not require monthly repayments.

However, some plans offer voluntary repayment options to help manage the total cost. The loan is repaid when the property is sold, usually upon:
✔ Death
✔ Moving into long-term care

5. You want to stay in your home

A lifetime mortgage allows you to release equity while continuing to live in your home, ensuring stability and peace of mind.

6. You need a flexible way to access funds

Some lifetime mortgages offer:
✔ Lump sum payments
✔ A drawdown facility (allowing you to access money as needed rather than taking a single large sum)

This flexibility ensures you only borrow what you need, helping to reduce interest costs.

7. You want to support family financially

Many homeowners use a lifetime mortgage to:
✔ Gift money for a house deposit
✔ Assist with education costs
✔ Provide financial support for family members while retaining financial independence

8. You are concerned about inheritance planning

Some lifetime mortgage products offer:
✔ Inheritance protection, allowing you to ring-fence a portion of your home’s value for your beneficiaries
✔ A no negative equity guarantee (approved by the Equity Release Council), ensuring you never owe more than your property’s value

9. You want to reduce your monthly outgoings

If you have existing mortgage repayments or outstanding debts, a lifetime mortgage can be used to clear these obligations, reducing your overall monthly financial commitments.

10. You are aware of the long-term costs

Most lifetime mortgages accumulate compound interest over time, which can significantly increase the total repayment amount.

Some products allow:
✔ Voluntary or partial interest repayments, which can help limit the interest roll-up effect
✔ More control over your financial situation

Final thoughts

A lifetime mortgage is one of the most common forms of equity release, providing financial flexibility in later life.

However, it is important to seek professional advice to ensure this solution aligns with your long-term financial goals.

If you think equity release through a lifetime mortgage may be right for you, speak to one of our expert advisors to explore your options.