Thinking about turning your home’s equity into cash for retirement? A lifetime mortgage might be the tool you’re looking for. It’s a type of equity release that lets you borrow against the value of your house while you stay living there. You don’t have to make repayments until the home is sold, you move out permanently, or you pass away.
The idea is simple: the lender adds the loan amount to the property’s value, plus interest, and all of that gets repaid later. Because you’re not paying monthly instalments, your cash flow stays untouched – a big help if you’re on a fixed income.
First, the lender assesses the worth of your home and your age. The older you are, the higher the percentage of the property you can release – often up to 60% for people in their 80s. The loan amount is then added to the property’s value, and interest compounds each year. You’ll see the total debt grow, but you never have to pay it down while you live in the house.
When the repayment event happens, the house is sold and the proceeds go straight to the lender. If there’s leftover money after the loan is cleared, it passes to your estate or heirs. Some plans let you protect a portion of the home’s value for your family, called a “no negative equity guarantee”.
Pros are clear: you get a lump sum or regular income without moving, you keep ownership, and there’s no monthly bill. It can fund home improvements, pay off debts, or boost your retirement income. The biggest con is the interest that builds up – it can eat a sizable chunk of the estate over time. Also, you’re reducing the inheritance you can leave.
Lifetime mortgages suit people who own a home outright, are 55 or older, and need extra cash but don’t want to sell. They’re less attractive if you plan to move soon or if your family relies heavily on the house’s value. Always compare different providers, look at their fees, and check if they offer the negative‑equity guarantee.
Before you jump in, run the numbers. Use an online calculator to see how much you could release and how the debt will grow. Talk to a financial adviser who knows equity release – they can help you weigh the tax implications and the impact on means‑tested benefits.
On this tag page you’ll also find articles that touch on related topics – from budgeting tips to credit score basics – that can help you manage the cash you get from a lifetime mortgage. Read them to get a full picture of how this product fits into your overall financial plan.
Bottom line: a lifetime mortgage can be a handy way to unlock home equity without leaving the house, but it’s not a one‑size‑fits‑all solution. Do the math, get professional advice, and make sure it matches your long‑term goals before you sign anything.
Not sure where to get equity release in 2025? See when to use a broker vs direct lender, how to compare deals, fees, and safeguards, plus practical next steps.
Read More >>