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You asked: What is a Lifetime mortgage?A lifetime mortgage is a form of equity release that allows you to access the equity tied up in your home. It's a long-term loan which is secured on your property. Although it's a mortgage, you don't have to make repayments. The loan and interest will be repaid in full, usually from the sale of your property, when you (and your partner for joint lifetime mortgages) pass away or move into long-term care (Terms and Conditions apply). That's why it's called a lifetime mortgage. You continue to own your property. Interest is charged on the amount borrowed and the interest already added. This quickly increases what you owe and will reduce the value in your property, possibly to nothing.
Taking out a lifetime mortgage will reduce the value you have in your home, and therefore the amount of any inheritance you leave. Your tax position and any entitlement to welfare benefits may also be affected.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
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