Our lifetime mortgage, the type of equity release we offer, is a long term-loan secured against the value of your home. Choosing to release money from your home this way will reduce the amount of inheritance you can leave behind, and possibly affect your tax position and whether you can still get certain means-tested benefits.
It’s one of the bigger financial decisions you’ll make, and it’s key to be sure it’s right for you. Here are the stepping stones that lead you from considering a lifetime mortgage to the cash landing in your account – and an outline of what happens once it’s time to repay the money.
How long does equity release take?
It usually takes around 8 to 10 weeks from when we get your lifetime mortgage application (step 6 below) to you having the money.
How to apply for a lifetime mortgage with us
How your lifetime mortgage is repaid
You won’t need to pay a penny back to us along the way, although you can choose to make partial repayments (more on that in a moment). The loan is usually repaid using money from the sale of your home, once you (and your partner, for a joint lifetime mortgage) die or go into long-term care, subject to our terms and conditions.
Interest over the term of your loan
Each year interest is added to both the loan and any previous interest that has already built up, which will quickly increase the amount owed. You’ll get an interest rate when you get your offer, which will be fixed until the lifetime mortgage ends.
Voluntary partial repayments
Each year, subject to our terms and conditions, you can choose to repay up to 10% of the total amount you’ve borrowed, free from any early repayment charge. This is known as a Voluntary Partial Repayment. You can make these across several smaller payments, but the minimum you can pay each time is £50.
You can't set up regular repayments (like a direct debit), so you’ll need to get in touch with us each time to pay by BACS, CHAPS, Faster Payments, or debit card.
You can only make partial repayments like this if you applied for a lifetime mortgage after 28 April 2014.
How the final repayment works
This is due when the last or only borrower dies or goes into long-term care, and the lifetime mortgage is usually paid back from the sale of the property. Any money that’s left after the payment is made will go to the beneficiaries of your estate – and your ‘estate’ simply means everything you owned. The people managing your estate have up to 12 months to repay the lifetime mortgage.
Interest is calculated daily and added to the lifetime mortgage once a year until the money has been paid back in full. The property’s home and buildings insurance must stay up to date until that happens.

How much money could you release from your home?
Get crunching the numbers for an idea of how much tax-free cash you could be able to release from your home using our calculator.