Lifetime Mortgages: Your Questions Answered

Checked by Suzanne Bradshaw, Director, Mortgage & Finance Arena. Last updated September 2026.

A lifetime mortgage lets you take money from your home without moving out. It is the most common type of equity release in the UK. It can help, but it is a big decision and it is not right for everyone. Below we answer the questions our clients ask us most.

Key facts

• You must be 55 or over.
• You keep full ownership of your home.
• You do not have to make monthly payments, but you can choose to.
• The loan is repaid when the last borrower dies or moves into long-term care.
• Plans that meet Equity Release Council standards mean your family will never owe more than your home is worth.

What is a lifetime mortgage?

It is a loan secured on your home. You get a tax-free lump sum, or a smaller sum with a cash reserve you can draw from later. You stay in your home and still own it. The loan and interest are paid back from the sale of your home when you die or move into care for good.

How does the interest work?

With most plans you pay nothing each month. The interest is added to the loan instead. Next year you pay interest on that interest too. This is called compound interest, or “roll-up”. It means the debt can grow fast. At a rate of 6%, the amount you owe would double in about 12 years.

If you want to slow this down, some plans let you pay some or all of the interest each month. Most plans also let you pay back part of the loan each year with no fee, within the lender’s limits.

Who can get a lifetime mortgage?

You must be 55 or over and own a home in the UK. If you own it with someone else, you both need to be 55 or over. Each lender sets its own rules on the type and value of property it will lend on. We check these for you before you apply.

How much can I borrow?

It depends on your age, your home’s value and sometimes your health. The older you are, the more you can take. If you have certain health conditions or smoke, some lenders will offer more. This is called an enhanced plan. You can get a rough idea with our equity release calculator.

Will I still own my home?

Yes. You keep full ownership and you can live there for the rest of your life, as long as you keep to the terms of the plan. You still need to keep the home insured and in good repair.

Can I move home later?

Yes. Plans that meet Equity Release Council standards let you move the plan to a new home, as long as the new home meets the lender’s rules. If you move somewhere cheaper, you may need to pay back part of the loan.

What can I use the money for?

You can use it as you wish. Our clients often use it to pay off an interest-only mortgage, clear debts, improve their home, top up their income or help family.

Can I get one if I still have a mortgage?

Yes, but the lifetime mortgage must be large enough to pay off your current mortgage first. This is one of the most common reasons people come to us. You can read how we helped one client in our lifetime mortgage case study.

Can I still leave money to my family?

Yes. Some plans let you protect part of your home’s value as an inheritance. This lowers the amount you can borrow. You can also keep the debt smaller by taking only what you need, or by paying some interest.

Could my family be left with a debt?

No, not with a plan that meets Equity Release Council standards. These include a “no negative equity guarantee”. This means the amount owed can never be more than the sale price of your home, as long as you keep to the terms of the plan.

What are the downsides?

• The debt can grow fast because of compound interest.
• It will reduce what you can leave to your family.
• It may affect means-tested benefits.
• Paying off the whole plan early can mean a large fee.
• It can limit your choices later, such as moving or borrowing more.

What else could I do instead?

You could downsize, use savings, ask family for help or take out a retirement interest-only mortgage. We look at all of these with you before we recommend anything. Read our guide to equity release vs retirement interest-only mortgages.

Should my family be involved?

We think it helps. You do not have to involve them, but it can avoid surprises later. You will also need your own solicitor, who will explain the plan to you before you sign.

Talk to our team

We give equity release advice from our office at Pride Park, Derby, and help clients across the UK. We explain your options in plain English and tell you if a lifetime mortgage is not right for you. Call us on 01332 300300 or read more about equity release in Derby.

Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. A lifetime mortgage is a loan secured against your home. Check that it will meet your needs if you want to move or sell your home, or if you want your family to inherit it.