Lifetime Mortgages and Equity Release

A lifetime mortgage is the most common form of equity release. It allows eligible homeowners to borrow against the value of their home while retaining ownership. The mortgage is normally repaid when the last borrower dies or moves permanently into long-term care.

Do I have to make monthly payments?

Many lifetime mortgages do not require mandatory monthly repayments. Interest can be added to the mortgage balance, which means the amount owed grows over time. Depending on the plan, you may be able to make voluntary payments, service some or all of the interest, or choose a product designed around regular payments.

Lump sum or drawdown?

A lump-sum plan releases the agreed amount at completion. A drawdown lifetime mortgage can allow you to take a smaller initial amount and keep an agreed facility available for later. Interest is generally charged only on money once it has actually been drawn, which can reduce unnecessary interest where the full amount is not needed immediately.

How much can I borrow?

The amount available depends on factors including the age of the youngest applicant, property value and type, the lender and sometimes qualifying health or lifestyle information. Higher loan-to-value borrowing can carry different pricing and criteria. Read more about how much equity release may be available.

What happens to my existing mortgage?

Any mortgage secured on the property normally has to be repaid on completion because the lifetime mortgage lender requires its own legal charge. The lifetime mortgage can potentially be used to repay that balance if sufficient borrowing is available.

Important considerations

Alternatives

Equity release should not be considered in isolation. Depending on your circumstances, alternatives can include a RIO mortgage, conventional interest-only or repayment borrowing, downsizing, using savings or other assets, or changing the amount you plan to raise. See alternatives to equity release.

Reviewed by David Farrell, Later Life Lending Specialist. Last reviewed: 3rd October 2026.

Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. Lifetime mortgages are secured against your home.