David Allan

Expertly compared by David Allan

Products Updated June 13, 2019

Lifetime Mortgages

Lifetime mortgages allow you release equity from your home without having to make any monthly repayments and with the benefit of still being able to live in your home. If you would like to find out what equity release options you have then our expert providers can help. Try out our lifetime mortgage calculator.

Calculator - Find out how much equity you could release today:

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Rated 5/ 5

Age Partnership Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

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Compares Equity
Release Marketplace

Proud to have provided over 10 years of award-winning retirement income services. Don't miss out on unlocking tax-free cash from your home. Apply with Age Partnership to use their free equity release calculator.

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Rated 5/ 5

Key Retirement

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Release Marketplace

Our Lowest Rate Promise is designed to find you the lowest applicable equity release rate on the market. If we cannot beat or match the rate from another provider we will pay you £500!

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Rated 4/ 5

Liverpool Victoria

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Equity Release
& Lifetime Mortgages

Equity release from LV lets you release tax-free cash from your home, without having to move, which you can then spend on your garden or home, on a holiday, to treat family or friends or to make your retirement more comfortable.

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Aviva

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Equity Release
& Lifetime Mortgages

Equity release is a way of supporting yourself later in life by unlocking tax-free cash from the value of your home, without having to move out. Request a quote today via our approved advisors

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Rated 4/ 5

Pure Retirement

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Equity Release
& Lifetime Mortgages

Pure Retirement was founded on the belief that everyone deserves to enjoy their later years. As recent winners of the Moneyfacts Age award for Equity Release Lender of the Year, they provide a simple and straightforward solution for accessing the value tied up in your home.

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Rated 4/ 5

Bath Building Society

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Equity Release
& Lifetime Mortgages

Our Retirement Mortgages are aimed to meet the needs of older borrowers who are either looking to release equity, remortgage with us because your current lender has an age limit or move home. The Society can lend a minimum of £50,000 and up to a maximum of £200,000.

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Rated 4/ 5

One Family

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Equity Release
& Lifetime Mortgages

OneFamily Lifetime Mortgages enable you to borrow a one-off lump sum, and then choose whether you want to make monthly interest payments, a more flexible arrangement of one-off voluntary payments, or no payments at all.

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Rated 4/ 5

Hodge Lifetime

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Equity Release
& Lifetime Mortgages

Hodge Lifetime launched the first equity release plan in 1965, and is the longest established equity release provider in the UK. Its products are provided by Julian Hodge Bank Limited. The 55+ Mortgage has been designed specifically with the older borrower in mind.

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Just Retirement

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Lifetime Mortgages
Home Reversion Schemes

There are two main types of equity release product: lifetime mortgages, which are mortgages that are secured against your home; and home reversion plans, where you sell all or part of your property to a reversion company in exchange for money. Request a quote via our approved advisors

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Rated 4/ 5

Canada Life

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Equity Release
& Lifetime Mortgages

Equity release is a way of supporting yourself later in life by unlocking tax-free cash from the value of your home, without having to move out. Request a quote today via our approved advisors

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Rated 4/ 5

Prudential

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Equity Release
& Lifetime Mortgages

Equity release is a way of supporting yourself later in life by unlocking tax-free cash from the value of your home, without having to move out. Request a quote today via our approved advisors.

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Rated 4/ 5

More 2 Life

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more 2 life provides a wide range of lending solutions for the over 55s. They work exclusively with qualified advisers and their lifetime mortgage plans help customers release cash from their homes to help deliver a more comfortable and flexible retirement.

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Retirement Advantage

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& Lifetime Mortgages

As part of Canada Life, Retirement Advantage has more capability than ever before to help customers feel better equipped to make the most of their retirement. Request a quote via our approved advisors

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Legal & General

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& Lifetime Mortgages

A Legal & General Lifetime Mortgage allows homeowners who are over 55 and have a property worth at least £100,000 (£150,000 for ex-council properties) to release cash from their home.

What is a Roll-up lifetime mortgage?

Release equity with a lifetime mortgage

A rollup lifetime mortgage is a type of lifetime mortgage whereby the interest element is rolled up (compounded) and is to be repaid at the end of the scheme. The benefit to this type of lifetime mortgage is that you don’t need to make any interest repayments during the lifetime of the mortgage. A roll-up lifetime mortgage is popular for those who are 55 or over and wish to maximise the amount of money they have to enjoy and don’t wish to have any further expenses into retirement or later life.

The interest that has accrued over the period and the principle loan amount is ultimately paid from the proceeds of your house sale when you die or go into long term care.

It is important to consider that the overall debt interest at the end of the scheme will be significantly greater with a roll-up mortgage when compared to a interest only lifetime mortgage whereby a monthly contribution is made towards the interest element.

What are the disadvantages?

  • The amount available under the scheme is likely to be less than the amount achievable with a home reversion plan.
  • The amount you leave behind to your children or beneficiaries will be significantly less.
  • If you wish to repay the plan earlier than anticipated there is likely to be early repayment penalties.

Where can I get further advice?

If you are interested in a roll-up lifetime mortgage or any type of equity release solution then our regulated lifetime mortgage experts can help. They can offer independent advice and guidance on what options are available to you and how much equity you would be able to release. Our experts are regulated by the Financial Conduct Authority and are members of the Equity Release Council and abide strictly by their code of conduct.

What is an interest only lifetime mortgage?

Interest only lifetime mortgages were released into the market in 2006 and allow lifetime mortgage customers to make monthly interest payments on their mortgage. The payments can either but full or partial payments and will go towards reducing or eliminating the roll-up of interest. Unlike a standard roll-up mortgage making regular interest payments allows you to reduce the overall amount of interest you may throughout the scheme.

Taking out a lifetime mortgage allows you to release a tax free cash lump sum that can be used for a varity of reasons such as help with money in retirement, home improvements, financial help for children and grand children. The money you receive can be spent as you wish.

How much will my interest payments be?

The amount you pay each month will be worked out between yourself and your financial advisor and will depend on how much you can comfortably afford to pay each month. This is then submitted to the lender as part of your mortgage application. Our equity release experts can provide you with a detailed quote and personal advice on these types of mortgages.

What happens if I can no longer afford to make interest payments?

If you were no longer able to make interest payments or you changed your mind then your mortgage would simply revert to the roll-up lifetime mortgage. This means that the interest due would roll-up and be paid at the end of the mortgage term. It is important to discuss the consequences of this with your equity release advisor.

Can I release more equity later on?

Yes this is possible and if you would like further funds then you will need to speak with your equity release advisor who can provide advice and guidance on your options. They can also provide you with advice and a quote on how much additional money you may be able to receive. As done previously you can also then decide whether to make monthly interest payments or allow the interest to roll-up.

What is a fixed repayment lifetime mortgage?

With this type of scheme rather than having to pay interest like an interest only lifetime mortgage or have interest build up to be paid at the end of the scheme like a roll up lifetime mortgage. A fixed repayment lifetime mortgage works differently. With this type of scheme you agree with your equity release provider that you will pay an agreed larger sum in the future when your home is sold. This amount is fixed and agreed upfront when you initially take out the mortgage. You can decide to take a lump sum payment now or regular income payments for life.

As with other types of lifetime mortgage the fixed repayment scheme is approved by the Equity Release Council and has a no negative equity guarantee. This means that you’ll never owe more than the value of your home even if the value of your home decreases in the future.

As with the other types of schemes available you, under the fixed repayment lifetime mortgage you can continue to live in your home until you die or go into long term care.

What are the benefits?

  • The amount you repay is fixed therefore you have certainty of how much you will have to pay back.
  • You can still fully 100% benefit from any increased value in your home as unlike a home reversion scheme you have not agreed to give up a percentage of your homes equity.
  • You have the flexibility to choose a receive a lump sum payment now or a regular payment for life.

What are the disadvantages?

  • The scheme doesn’t offer good value in the event that you were to die early.
  • You may be limited to the amount you can raise when compared against other schemes such as a home reversion plan.
  • There is a limited choice of fixed repayment lifetime mortgages available.

To get a complete picture of all the advantgages and disadvantages that are applicable to your personal circumstances we would recommend you speak with one of our equity release experts. They will be able to explain the fixed repayment product in detail and how it compares against other equity release options that are available to you.

Where can I get further advice on fixed repayment schemes?

Our equity release experts are approved and FCA regulated advisors who can provide you with independent advice and assistance on the options that are available to you. The type of lifetime mortgage that is best for you will very much depend on a range personal factor such as your age, condition of your health, home value and who much equity you wish to release.

What is a drawdown lifetime mortgage?

In simple terms a drawdown lifetime mortgage allows you to receive regular cash payments from your scheme rather than a one off sump sum. It provides you with greater control and flexibility as to when you receive your money, and you benefit from only being charged interest on the amounts you receive. This type of lifetime mortgage provides an alternative solution for those who don’t need to access all of their money at once.

With a drawdown lifetime mortgage you agree with your provider a maximum facility or amount of money available to drawdown. You can then access this money as and when you need it. You may for example drawdown an initial amount of money you need now, and then save money in the scheme to access later on or as and when you require it.

How much can I receive under the drawdown lifetime mortgage?

As with any type of lifetime mortgage, with a drawdown lifetime mortgage the actual amount available will depend on personal factors such as your age, health condition and your home’s value. Our equity release experts will be able to provide you with an accurate quote, and discuss the options that are available to you.

Do I have to make any mortgage repayments?

With a drawdown lifetime mortgage any interest incurred can be rolled up (compounded) and repaid from your estate at the end of the scheme. However, depending on the options you choose you can also opt to make regular interest repayments to reduce the overall debt at the end of the scheme, which may then increase the amount of money you leave to any beneficiaries of your estate.

What are the main advantages?

  • Similar to a bank overdraft, you are only charged interested on the amounts you receive rather that the whole facility available.
  • You are provided with more control and flexibility as to when you receive your money.

What are the main disadvantages?

  • You may be provided with a smaller facility than if you were to go with the one off lump sum option.

 

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