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Scour the market and compare lifetime mortgages
Your mortgage is likely to be your biggest financial commitment, so shopping around for the best deal is vital. We can help by comparing thousands of products from a wide variety of lenders, covering the whole of the market. This way, you can be confident you’re getting the right deal for your needs.
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What is a lifetime mortgage?
A lifetime mortgage is a type of equity release scheme which lets you borrow money against your home while continuing to live there. The loan, plus any interest, is usually paid when you go into care, sell your property, or when you die. There may be the option to make payments to the provider to help limit the roll-up of interest over time, and reduce the overall debt.
How do lifetime mortgages work?
There are two main types of lifetime mortgages. The basic principle remains the same for both types of lifetime mortgage: you take a loan out and agree to pay it back with the proceeds of selling your property after you move out or pass away.
Interest roll-up mortgage: You receive a lump sum or regular payments. Interest is added to the loan, but you don’t make regular repayments. Instead, the interest is calculated – or ‘rolled up’ – as time passes. The full sum is paid off when the house is sold. Your beneficiaries can then keep what remains or you can use it to pay for care
Interest-paying mortgage: This type requires you to make regular interest repayments on your loan. The total amount still owed will be repaid upon your death or when you enter long-term care. Some plans also let you pay off the capital
You’ll probably be able to choose whether you want a large lump-sum upfront or a smaller advance. You may also be given the option of taking out smaller ‘top up’ loans later.
What are the advantages of lifetime mortgages?
Lifetime mortgages are a specialised product designed for people in specific circumstances. In some scenarios, they can be incredibly beneficial to the right person. Here are some of their positives:
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A cash boost
People whose homes have increased in value over the years often don’t feel any richer. This is because the money is tied up in bricks and mortar. A lifetime mortgage lets you take advantage of years of favourable market conditions
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Improve your lifestyle
You can spend the money on making home improvements, replacing your existing mortgage, a new car or those dream holidays
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You can stay at home
Because most people who take out lifetime mortgages are older, they tend not to move until they pass away or move into care. This way, they can enjoy the cash injection without worry
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Reduce inheritance tax liability
Releasing equity on a valuable home and gifting it could help with inheritance-tax planning
What are the downsides of lifetime mortgages?
As with everything, lifetime mortgages may come with a set of downsides too. Depending on your personal circumstances, they may not be the right solution for your needs. Here are a few cons you may want to consider:
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Advantages
Access money tied up in your home – release some of your property’s value without having to move
Stay in your own property – means there are no worries about having to move out of your home
Use the money as you wish – you can use the money for whatever you choose, including home improvements, a holiday, or helping out family members
Estate planning – releasing equity and gifting money could form part of your inheritance tax planning
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Downsides
Less inheritance – taking money from your home, plus any interest that builds up, can reduce the amount you have to leave to beneficiaries
Costs to consider – there may be valuation and legal fees, as well as adviser fees; these can all add up and also affect the amount left for your family to inherit
It could affect benefits – releasing money could affect your entitlement to some means-tested benefits; your adviser will discuss this with you
There may be restrictions – you’ll normally need to keep the property in good condition, plus there may be other conditions set by the provider
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You have to sell up at the end
To take out a lifetime mortgage, you must agree to sell your property when you move out. So, the family home can’t be passed to the next generation. You may also be limited to what changes you can make to your home and may be obliged to keep it in good condition
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No means-tested benefits
A lifetime mortgage may also mean you are unable to claim means-tested benefits. This could have an impact on how much tax you have to pay. Check with your adviser to see how you will be affected before committing
How do I qualify for a lifetime mortgage?
As with most loans, lifetime mortgages come with their own share of eligibility criteria. Of course, these will differ based on the lender. But usually, in order to qualify for a lifetime mortgage, you would be expected to:
Be 55 years old or older
Own a property that is in good condition, which is also your current residence
Be located in England, Scotland, Wales or Northern Ireland
It’s also worth bearing in mind that some lenders will take into consideration the value and condition of your home before accepting your application.
Compare lifetime mortgage deals
So, what is a lifetime mortgage? If you want to learn more and are interested in any form of equity release, it’s a good idea to speak to a specialist advisor.
An Independent Financial Advisor (IFA) who specialises in planning for retirement should be able to help you choose the right lifetime mortgage for you.
MoneySuperMarket has partnered with award winning Equity Release Supermarket to offer you lifetime mortgages, as well as other forms of equity-release mortgages.
What is the difference between equity release and a lifetime mortgage?
Equity release is the umbrella term for products that let you access money tied up in your home. A lifetime mortgage is one type of equity release plan. This is one of the most popular options.
Can you pay back equity an release plan early?
Yes, you can. But you may have to pay an early repayment charge. The amount and terms vary from one provider to the next, so check the Ts and Cs carefully before making any decision.
What happens to a lifetime mortgage when you die?
A lifetime mortgage will usually need to be repaid when you pass away. This is typically done by selling the property.
Can I move house with a lifetime mortgage?
Usually, yes. It is usually possible to move, but you will need to check with your equity release provider. Your adviser can explain how moving could affect your plan.
Does a lifetime mortgage affect my benefits?
Yes, it can. Releasing money from your home could affect your entitlement to some means-tested benefits.
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Reviewed on 15 Oct 2026
