Lifetime mortgage advice for homeowners aged 55 and over

More people than ever carry a mortgage or other borrowing into retirement, or find they need money for something they had not planned for. Common reasons include repaying an existing mortgage, covering unexpected bills, helping children with a deposit, replacing a car, a holiday, home or garden improvements, or simply topping up retirement income.

A lifetime mortgage is one way of doing that using the value of your home. Whether it is the right way depends on your circumstances, and there are alternatives worth considering first.

Most lenders offer lifetime mortgages to homeowners aged 55 and over. Some plans, and the amounts available, improve as you get older.

Yes. With a lifetime mortgage you remain the legal owner of your home. The lender places a first charge on the property, in the same way as an ordinary mortgage, and you have the right to live there for the rest of your life.

Repayment normally happens when the last homeowner dies or moves into long-term care, usually from the sale of the property. There is no fixed end date during your lifetime.

You do not have to make monthly repayments unless you want to. Most plans let interest roll up and be repaid at the end, and many allow voluntary repayments within set limits if you would rather keep the balance down.

Plans that meet Equity Release Council standards carry a no negative equity guarantee, which means the amount repaid will never be more than your home is sold for, so no debt from the plan passes to your family.

A lifetime mortgage will, however, reduce the value of your estate and therefore what your family inherits.

It is understandable. Schemes sold in the 1970s and 1980s lacked today’s protections and caused real harm.

Lifetime mortgages sold today are regulated by the Financial Conduct Authority, and plans from Equity Release Council members follow its standards, including the no negative equity guarantee and the right to remain in your home. Advice has to be given by a qualified adviser.

That does not make it right for everyone. It is a long-term commitment with real trade-offs, which is why we go through them with you before you decide.

Usually, yes. Interest is added to the loan and then charged on the larger balance, so the amount owed grows over time, often substantially over many years. That reduces what is left for your family.

There are ways to limit it: some plans let you protect a share of your home’s value as inheritance, lenders cap how much you can borrow against your age and property value, and you can often make voluntary or monthly interest payments.

As with any mortgage there can be solicitor’s fees, a valuation fee, lender fees and our advice fee. Most are payable on completion rather than upfront.

We will give you a full breakdown of the costs for your own circumstances, and a personalised illustration showing what the plan would mean over time, before you commit to anything.

Absolutely, and we encourage it. A lifetime mortgage affects your estate, so it helps when the people close to you understand how it works.

If you would rather keep things private, that is your choice and we will respect it. It is your home, your money and your future.