What is a lifetime mortgage?

A lifetime mortgage allows you to release some of the equity in your property, without the need to move. They work slightly differently to traditional mortgages; how much you can borrow depends on how old you are and the value of your property, rather than the amount you can afford to pay each month.

How do Lifetime Mortgages work?

Available to homeowners aged 55 or over, lifetime mortgages enable you to borrow a one-off lump sum, and then choose whether you want to make monthly interest payments, a more flexible arrangement of one-off voluntary payments, or no payments. You can even choose for your family to make the monthly interest payments.

Either way, the mortgage and any accumulated interest along with any charges, will be repaid when you die, or move into long-term care - using the cash generated from the sale of your home.

Finally, with a lifetime mortgage you will always retain ownership of your home, and your home will never be repossessed (as long as you abide by the terms and conditions of the loan).

Am I eligible for a lifetime mortgage?

Lifetime mortgages are eligible for those that meet the following criteria:

You must be ages over 55

You must own your property, based in the UK

Your property must be worth a minimum of £70,000

You have little or no mortgage left on your property

To determine your eligibility and how much you can borrow, use our free Equity Release Calculator.

Lifetime mortgages couple

How do I get a lifetime mortgage?

A lifetime mortgage can only be taken out through a specialist regulated adviser. They will be able to listen to your needs and research your options amongst a wide range of mortgage providers - it may be that a lifetime mortgage isn't right for you.

If you do not have a financial adviser, then you can contact organisations such as VouchedFor, The Personal Finance Society or OneFamily Advice - independent and impartial advisers who offer whole-of-market lifetime mortgage advice.

Lifetime mortgage

  • Allows you to release a one-off cash lump sum
  • You will always retain ownership of your home
  • You will never owe more than the value of your property
  • Your home will never be repossessed as there are no monthly payments so you can't get into arrears


Lifetime mortgage risks to consider

  • It will impact any inheritance that you leave to your beneficiaries
  • It may impact your rights to state benefits
  • Your estate will be reduced due to the lifetime mortgage
  • There could be risks associated with an increase in interest rates
  • You may face early repayment charges if you want to pay off your loan early

What does a lifetime mortgage cost?

Costs you may be required to pay include:

  • Buildings insurance
  • Legal fees
  • Valuation fees
  • An arrangement fee to the lender
  • A fee to the adviser that helped you set up the scheme
  • A completion fee

The value of these will vary, depending on your circumstances. Speak to your equity release adviser for further details.

Please read our Guide to Lifetime Mortgages for more information or speak to your financial adviser.

Frequently asked questions about lifetime mortgages

An increasing amount of people are using a lifetime mortgage to clear their existing Interest-only mortgage which has come to the end of the term. Others are using the money to top up their pension and secure a better quality of living.

Member of the Equity Release Council

OneFamily is a member of the Equity Release Council, which means that we adhere to a strict code of conduct.

To find out more, please visit their website at

Look out for the Equity Release Council logo when choosing your product.

This is a lifetime mortgage

To understand the features and risks, ask for a personalised illustration.