What is a Lifetime (Roll-Up) Mortgage?

A lifetime mortgage is a form of equity release where a loan is secured against your property to provide you with a tax free cash lump sum or a regular income to spend as you wish, with no monthly repayments to meet.

Interest is added to the lifetime mortgage loan throughout your lifetime, accruing at a fixed or variable rate. The loan plus interest is eventually paid back when the home is sold, usually when you move into long term care, or when you and your partner die. You can typically release between 20-56% of the value of your home with a lifetime mortgage, depending on your age. The minimum age is 55.

Advantages of a lifetime mortgage:

• A lifetime mortgage gives you the choice of a cash lump sum or income with no monthly repayments to meet
• You retain full ownership of your home with a Lifetime Mortgage
• Lifetime mortgages are available to younger people (aged 55+)
• No negative equity guarantee
• Some lifetime mortgage plans let you guarantee an inheritance for your family
• Regulated by the Financial Services Authority

Disadvantages of a lifetime mortgage:

• The amount you leave as an inheritance will be reduced
• The interest applied can grow quickly as it is compounded
• You can't usually raise as much money with a lifetime mortgage as you could with a home reversion plan, especially at younger ages
• If you repay the lifetime mortgage early, you may have to pay an early repayment charge
• Your tax position and other state benefits may be affected

The Lifetime mortgage has become a highly popular form of equity release over the past few years, prompting many providers to offer a variation of a lifetime mortgage called a drawdown plan which allows you to release equity as and when you need to, rather than taking a lump sum. You can get an idea of how much equity you could release with a lifetime mortgage by referring to our equity release calculator.

We are independent equity release advisers who offer impartial and specialist advice on a range of equity release schemes including drawdown lifetime mortgages. To find the best equity release solution for you, get specialist advice on equity release by speaking to our friendly and knowledgeable equity release adviser.

To find out more about equity release:

• Call our friendly team on 020 8994 2021.
• Send an email to info@equityreleased4u.co.uk.
• Or complete the short enquiry form to the right of this page

No home visit will be required and you will never feel obligated to proceed. We believe in offering a valuable and honest service of providing impartial and knowledgeable equity release advice without obligation.

Why check out our equity release calculator and find out how much cash you could release from your home.