What is a Lifetime Mortgage?

A Lifetime Mortgage is a long-term loan that allows you to release some of the value of your property tax-free. It is the most popular form of equity release for over 55s. The Royal London Later Life Lending Service is provided by Responsible Life and allows you to consider the available options.

How does a Lifetime Mortgage work?

With a Lifetime Mortgage:

  • There are no required payments to make each month, but you can choose to make payments if you wish
  • The balance, including interest, is usually repaid through the sale of the property
  • There are guarantees in place to ensure you will never owe more than the value of your home
  • The amount you can release is linked to the age of the youngest homeowner and the property value
  • There are typically fixed interest rates for life.


Do bear in mind that a Lifetime Mortgage could reduce the value of your estate and affect your entitlement to means-tested benefits.

Find out how much you can release from your home with the equity release calculator*. You'll get an estimate in minutes, plus a free guide to equity release.

*More information about Responsible Life and how the information you provide in the calculator is processed is available in their privacy policy.

Types of Lifetime Mortgages

Lifetime Mortgages can largely be grouped into two types:

Lump Sum Lifetime Mortgages

A Lump Sum Lifetime Mortgage lets you release equity from your home in one lump sum of money.

You don't need to make any payments, so the interest will be added to the mortgage monthly and 'roll-up' over time

Drawdown Lifetime Mortgages

A Drawdown Lifetime Mortgage lets you release an initial amount of money, while also creating a reserve account of further funds.

Interest is only added to the amount you access - the reserve is interest-free until you draw down from it.

Both types of Lifetime Mortgage come with flexible features

If you wanted to, some Lifetime Mortgages allow you to make optional payments without early repayment charges applying. Others offer you the option to repay some or all of the interest each month. Your equity release adviser will be able to explain all the features that are available to you.

Want to know which could be the right one for you?

Call 0800 023 9313 for more information. When you call, your call will be answered by Responsible Life’s Information Team. They will discuss your options and, should you wish to progress, connect you to one of their equity release advisers. If you have an existing financial adviser then it's always best to talk to them first.

Prefer to find out how much equity you can release from your house first? Check out the equity release calculator.

 

Why a Lifetime Mortgage?

You still own your home and you don’t have to move out

No monthly repayments, so you can manage your finances without having to factor in mortgage payments

Repay the loan through the sale of your home when you die or when you move into residential care

padlock and key

Is a Lifetime Mortgage for me?

Releasing equity with a Lifetime Mortgage could be the right choice for you if you:

  • are over 55
  • want to borrow at least £10,000
  • own your home and it’s worth at least £70,000

To get an estimate of how much you could release, check out the equity release calculator. You get an estimate in minutes, plus a free guide to equity release.

telephone

To apply:

  1. Freephone 0800 023 9313 to discuss your options with the Information Team
  2. The Information Team can put you in touch with one of Responsible Life’s equity release advisers, who will offer advice on ways to release equity from your home
  3. If you meet the criteria and want to go ahead with your application, apply for your Lifetime Mortgage.

No time to call now? Use the equity release calculator to get an estimate of the equity in your home. Responsible will also send you a free guide to equity release.

 

Frequently asked questions about Lifetime Mortgages

No. A Lifetime Mortgage involves borrowing against your home, not selling it. You still own your property and you don’t have to move out.

All financial products come with an element of risk. Our Later Life Lending Service partner, Responsible Life, will only recommend Lifetime Mortgages from lenders who are members of the Equity Release Council. Lifetime Mortgages are also fully regulated by the Financial Conduct Authority.

The Equity Release Council exist to promote high standards of conduct and service. For a lender to be a member of the Council, they must offer products that include a variety of safety features, such as the guarantee that you can never owe more than your home’s value.

You can use the free and instant equity release calculator to find out how much you can release with a Lifetime Mortgage. The calculator will use your age and the value of your home to give you an estimate of how much you could release.

When you have completed the required information, you will receive a free guide to later life lending, both by email and in the post.

With a Lifetime Mortgage, the amount you owe is paid back after you die or enter residential care. Usually this is done with the sale of the home. 

As the decision to release equity with a Lifetime Mortgage is a big one, you need to receive financial advice. Particularly as a Lifetime Mortgage could reduce the value of your estate and affect your entitlement to means-tested benefits. By speaking with one of Responsible Life’s equity release advisers, you can determine if a Lifetime Mortgage is the right decision for you. They will provide a personalised illustration of the features and risks, as well as explain the different features available.

If you are interested in a Lifetime Mortgage,why not give Responsible Life’s Information Team a ring on 0800 023 9313? They would be happy to help.



No. A Lifetime Mortgage involves borrowing against your home, not selling it. You still own your property and you don’t have to move out.

All financial products come with an element of risk. Our Later Life Lending Service partner, Responsible Life, will only recommend Lifetime Mortgages from lenders who are members of the Equity Release Council. Lifetime Mortgages are also fully regulated by the Financial Conduct Authority.

The Equity Release Council exist to promote high standards of conduct and service. For a lender to be a member of the Council, they must offer products that include a variety of safety features, such as the guarantee that you can never owe more than your home’s value.

You can use the free and instant equity release calculator to find out how much you can release with a Lifetime Mortgage. The calculator will use your age and the value of your home to give you an estimate of how much you could release.

When you have completed the required information, you will receive a free guide to later life lending, both by email and in the post.

With a Lifetime Mortgage, the amount you owe is paid back after you die or enter residential care. Usually this is done with the sale of the home. 

As the decision to release equity with a Lifetime Mortgage is a big one, you need to receive financial advice. Particularly as a Lifetime Mortgage could reduce the value of your estate and affect your entitlement to means-tested benefits. By speaking with one of Responsible Life’s equity release advisers, you can determine if a Lifetime Mortgage is the right decision for you. They will provide a personalised illustration of the features and risks, as well as explain the different features available.

If you are interested in a Lifetime Mortgage,why not give Responsible Life’s Information Team a ring on 0800 023 9313? They would be happy to help.



Got a question about Lifetime Mortgages? The Responsible Life team are here to help.

0800 023 9313

Free from UK landlines and mobiles

Mon to Fri: 9am-8pm. Sat: 9am-5pm.

Royal London have chosen Responsible Life to provide our customers with advice on Later Life Lending products. Responsible Life are not part of the Royal London Group.

Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/) under reference 610205.

If you choose a mortgage with required repayments during your lifetime then your home may be repossessed if you do not keep up with the payments. A Lifetime Mortgage may impact the value of your estate and could affect your entitlement to means tested benefits. Think carefully before securing other debts against your home.

To understand the features and risks, ask for a Personalised Illustration. Responsible Life’s adviser will talk through the setting up costs of a mortgage before you make any decision to proceed. Only if you choose to proceed and your case completes will Responsible Life charge an advice fee, currently not exceeding £1,490.

If you take out a product recommended by Responsible Life, Royal London Marketing Limited will receive a fee, for this introduction. If you would like further details about this fee, Responsible Life will be able to provide you with this. More information about Responsible Life and how your information is processed is available on their privacy notice. Find out how Royal London manages your personal data.

Royal London Marketing Limited is authorised and regulated by the Financial Conduct Authority, registration number 302391. Registered in England and Wales number 4414137.

Responsible Life's registered office is: Mills Bakery, Royal William Yard, Plymouth, PL1 3GE. Registered in England & Wales. Company number 7162252.