UK Lifetime Mortgage

UK Lifetime Mortgage

A UK lifetime mortgage scheme is a particular form of equity release in the UK, where an individual is able to extract capital or an income, which must be repaid, along with interest, to the equity release provider. Our consultants are focused in delivering support and recommendations to clients in search of a UK lifetime mortgage.

The UK lifetime mortgage arrangement is concluded under the condition that the borrower dies or has to reside in a care institution, due to diminishing health. There are three individual UK lifetime mortgage schemes available to clients seeking a financial boost; interest only UK lifetime mortgage schemes, interest rollover UK lifetime mortgage schemes, or home income UK lifetime mortgage plans.

An interest only UK lifetime mortgage scheme permits the borrower to issue monthly interest payments to the provider; however, they are able to pay the full amount of the loan when the contract ends. Interest rates may be variable or remain fixed amongst interest only UK lifetime mortgage schemes. Interest only schemes may be advantageous to younger borrowers as the money generated from the mortgage can repay withstanding debts.

Interest rollover UK lifetime mortgage schemes see the borrower repaying interest along with the mortgage debt at the end of the arrangement. If interest rates are variable, interest is registered every month over the duration of the agreement and then added to the total mortgage debt.

A positive aspect of interest rollover UK lifetime mortgage schemes is that the borrower is guaranteed lifetime occupancy, as well as the independence to use the generated capital or income towards their own intentions. However, interest rollover schemes can prove to be costly, especially if interest rates rise, as this would result in a rapid escalation of debt. By receiving help from our committed advisers, specialised advice will be offered to our clients on whether an interest rollover UK lifetime mortgage is an appropriate solution to obtain additional income or capital.

Home income plans involve the borrower repaying the mortgage loan and interest by the use of fixed monthly instalments. The money generated from the loan may be used to contribute to the purchase of an annuity. This ensures the borrower will receive a consistent form of income for the remainder of their life. Borrowers may use the generated cash sum to obtain an annuity, which provides a guaranteed lifetime income.

There are different forms of annuities; a level income (the quantity of money received each month remains constant) an escalating income (payments are amplified each month), guaranteed income (the individual selects a fixed payment duration) and a joint life (suitable income for couples). A problem with home income plans is the borrower may find it difficult to keep up with monthly payments, especially if the income from the annuity does not exceed the monthly mortgage payments.


An individual who is currently deciding on a suitable method to generate a cash income or capital must be aware of the many risks related to a UK lifetime mortgage.

Our advisers may suggest alternative options other than UK lifetime mortgage schemes, which each client may receive more benefit from. For those who have financial requirements that are well suited to UK lifetime mortgage schemes, our team of advisers aim to seek the most appropriate and cost-effective form of UK lifetime mortgage.

If you require more information on UK lifetime mortgage plans contact our advisers today.

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This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.