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Plans > Lifetime Mortgage
Find out how a lifetime mortgage could bring you tax-free cash to boost your income if you are over 55
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A lifetime mortgage is the most popular form of equity release in the UK. If you are aged 55 or over and own your home, you can release tax-free cash without having to sell or move.
This form of lending is a secured loan that’s typically repaid, along with any accrued interest, only when you pass away or move into long-term care. You retain full ownership of your property and may be able to protect a percentage of its value to pass to your loved ones as inheritance.
Here at Equity Release Wise, we bring you access to the best quotes and deals through one of the UK’s largest and best-established equity release specialists. Find out what’s possible for you: check here or talk to one of our friendly consultants by calling 0808 178 3055 or request a call back.
Industry figures show that the average amount released by lump sum lifetime mortgage customers is £126,422, but around 55% of customers choose drawdown lifetime mortgages, with the initial release being on average £65,856 (Equity Release Council, 2025). Homeowners use the tax-free cash they release for everything from home improvements and holidays to helping their children get on the property ladder.
A lifetime mortgage (sometimes called a life mortgage) could be ideal if you need money but don’t have enough regular income to make loan repayments. It releases tax-free cash through a loan secured against the value of your home – but with no compulsory monthly repayments.
Here’s how it works:
Read more: How does equity release work?
With many UK lenders and hundreds of plans to choose from, you can choose a life mortgage product that is a great fit for you.
We’ve put together extensive guides to your equity release lifetime mortgage options – and you can call 0808 178 3055 to talk to one of our selected advisers about your circumstances and needs.
Lump sum
Access a tax-free cash lump sum if you’re a homeowner aged 55 or over. You retain full ownership and can stay at home until you pass away or move into long-term care.
Drawdown
Instead of making a one-off cash withdrawal, you take an initial cash sum and additional funds as and when you need them. This helps to reduce the total interest you pay.
Interest-only
A more cost-effective method of equity release where you make voluntary interest payments to reduce or prevent compound interest building up.
Enhanced lifetime mortgage
Certain health conditions or lifestyle factors could qualify you for higher cash releases or lower interest rates. A simple questionnaire is all that’s needed to check eligibility.
Second home lifetime mortgage
If you have a second home you may be able to secure a lifetime mortgage against it, or make your dream of a second home come true with a release from your main residence.
Buy-to-let lifetime mortgage
These specialist plans could enable you to release equity from a buy-to-let property, or to use the wealth in your home to help you make a buy-to-let investment.
If you need an alternative to a lifetime mortgage, UK homeowners also have the option of a home reversion plan. This is a less common type of equity release where you sell all or part of your property at less than market value in return for a lump sum, a regular income, or both. You stay in your home as a tenant, paying no rent, until you pass away or move into long-term care.
How much money you can release depends on several factors. These include the age of the youngest homeowner (must be 55 or over), the value of your property, how much equity you have in the property, and where you live.
The older you are, the more you can borrow, up to a maximum of around 50% of the property’s value with some lifetime mortgages. UK lenders will also have a minimum loan amount, starting from £10,000.
Example: If your home is worth £350,000 you could be eligible to release around £70,000 at 55, or around £140,000 at age 70 – your actual maximum release will depend on your chosen provider’s lending criteria and limits.
The average release amount for new customers choosing a lump sum lifetime mortgage is £126,422 (Equity Release Council, 2025)
To find out how much you could borrow, use our free equity release calculator or talk to one of our friendly consultants by calling 0808 178 3055 or request a call back.
Read more: How much equity can I release?
Each lender has their own criteria for a lifetime mortgage, but the following are examples of typical criteria:
Call us on 0808 178 3055 and we’ll arrange a free, no-obligation appointment and lifetime mortgage advice* from a specialist who will confirm whether you are eligible. If you’re unable to talk now, request a call back and we’ll call when it’s convenient to you.
Now could be a good time to switch to a different lifetime mortgage. You may be able to release more tax-free cash due to being older than when you took out your existing plan. An increase in your property’s value or being in poorer health could also qualify you for further cash. Interest rate changes may also save thousands over the lifetime of your plan.
Why not arrange a free review* to find out if switching works for you?
A lifetime mortgage can be a great way to access cash for some people, but for others there will be sound reasons not to go ahead. Here is a quick summary of some of the main things to consider:
| Pros | Cons |
|---|---|
| Access tax-free cash as a lump sum or to boost your income. | Can be an expensive way to borrow due to compound interest. |
| Stay in your home for life or until you need long-term residential care. | May affect your eligibility for means-tested benefits. |
| No monthly repayments required – but you can make payments to reduce interest build-up. | Early repayment charges may apply if you repay the loan sooner than expected, but not in all circumstances. |
| Interest rates are typically fixed, so there is no risk of increases in interest rates affecting you. | Likely to reduce the value of your estate, so inheritance for loved ones will typically be affected. |
| No negative equity guarantee, and the option to further protect the inheritance you leave to loved ones. | If you release money as a gift for loved ones, they may later be liable for inheritance tax. |
See our more detailed breakdown of the pros and cons of equity release.
Thankfully, regulations and standards are in place to make sure that you get the proper advice and protection when taking out a lifetime mortgage. Here is a summary of the process that customers will typically be supported through:
A lifetime mortgage is a specialised form of lending, and not every lender offers it. Even so, there are plenty of providers to choose from and it could be time consuming and daunting for you to contact them all individually. This is where Equity Release Wise comes in: we can arrange a search across top equity release providers to help you find the best lifetime mortgage for your unique circumstances.
Here are just some of the leading providers the search will cover. All of them are of course authorised and regulated by the Financial Conduct Authority and are members of the Equity Release Council.
Find out if you qualify for equity release and how much you could borrow. Just click ‘Get started’ or call us on 0808 178 3055 and one of our team will be delighted to help arrange a free consultation and quote*.
1. Start your quote journey
Simply click ‘Get started’ to begin your search for the best plan for your circumstances.
2. Tell us what you need
Fill out some simple details about your situation so we can start to prepare your quote.
3. Compare your best deals
You’ll get personalised quotes tailored to your unique circumstances and goals.
Still unsure of a few things? We’ve got you covered with answers to some of our most frequently asked questions.
There are two main types of equity release, and a lifetime mortgage is the most popular one. This is where you take out a loan secured against your property, keep ownership of it and still have the right to live there. The second type is known as home reversion, where you sell your property or a percentage of it. Here too, you still have the right to live there, but this will be as a rent-free tenant rather than as owner of the property.
With a regular lifetime mortgage, you have zero monthly repayments and any interest that builds up is paid along with the loan itself once the property is sold when you pass away or move into long-term care. An alternative is an interest-only lifetime mortgage where you make voluntary payments of some or all of the interest to reduce or prevent the interest building up. Some lifetime mortgage plans also allow you to pay off some of the borrowed capital.
Just as with a normal residential mortgage, you should be aware of costs involved in setting up an equity release lifetime mortgage. Your adviser will make sure you understand these in full, but below is a summary:
Some of these fees can be paid from the money you borrow, so you may not have to worry about finding them from your existing savings.
Once a plan is taken out, there aren’t normally any fees. One exception is an early repayment charge that some lenders request if some or all of your lifetime mortgage is paid off before you pass away or move into long-term care.
As with traditional term mortgages, interest rates for life mortgages change frequently due to market conditions. Please see our equity release interest rates page for more details, including monthly updates on the latest rates.
Yes, lifetime mortgages and other forms of equity release are available across every country in the UK. When you contact Equity Release Wise, we will connect you with our carefully selected advisers who can help you find the best plan for your circumstances.
A lifetime mortgage has worked for thousands of over 55s in need of tax-free cash. But it’s important to understand lifetime mortgage pros and cons before deciding if it’s right for you, so here are some potential risks you need to be aware of:
We hope this information has been useful. To find out more or arrange a consultation with an adviser, please call or request a call back and we’ll be happy to help further.
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Request a call back+ Client testimonials refer to the service provided by our selected equity release advisers. We have changed the clients’ names and certain identifying information to protect their privacy.
Please note that equity release will involve a home reversion or a lifetime mortgage, which is secured against your property and will reduce the value of your estate and impact funding long-term care. To fully understand the features and risks, ask for a personalised illustration. Equity release requires paying off any existing mortgage. Any money released, plus accrued interest would be repaid upon death, or moving into long term care.
