Current house values have encouraged elderly people to consider unlocking the equity from their home in order to obtain a capital lump sum, regular income or a bit of both to fund their retirement. The scheme has also been recognised as a mechanism for mitigating future inheritance tax by taking their net worth below the threshold.

A Lifetime mortgage provides you with a percentage sum of your property value. Interest is then rolled up and added to the loan over the mortgage term. Once the mortgage is redeemed, the proceeds from the sale of the property will pay back the loan plus interest accrued. Any surplus would go to the borrower or their estate.

There are guarantees in place to ensure that you will never owe more than the value of your property.


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To understand the features and risks of a Lifetime mortgage, ask for a personalised illustration.