Equity release and lifetime mortgages

Understand your options. Make a decision with confidence.

Your home may hold a significant part of your wealth. A lifetime mortgage could help you access some of it while continuing to own your home. But it is a long-term financial commitment, and the right choice depends on your circumstances.

Evermore Mortgage Brokers provides lifetime mortgage advice, helping you understand the options, costs and implications before you decide.

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A lifetime mortgage is a loan secured against your home. It will reduce the value of your estate and may affect your entitlement to means-tested benefits.

What is a lifetime mortgage?

A lifetime mortgage is one form of equity release. You borrow against your property while retaining ownership. The loan and any unpaid interest are usually repaid when you die or move permanently into long-term care. For joint borrowers, this usually happens when the last borrower dies or moves permanently into care.

Equity release also includes home reversion plans, where you sell all or part of your home. These work differently. If a home reversion plan appears appropriate, a referral to a network-approved specialist would be required.

How could it work for you?

• Eligibility: many lifetime mortgages are available from age 55. Age requirements, property criteria and borrowing limits vary by product.
• Access to funds: some plans provide a single lump sum; others allow an initial amount followed by later withdrawals, subject to the plan’s terms.
• Payments: some plans allow interest to be added to the loan; others offer voluntary payments or require payments for an agreed period. Affordability must be considered where payments are required.
• Existing borrowing: an existing mortgage normally needs to be repaid on completion, which can use part of the money released. Replacing it with a lifetime mortgage may increase the overall cost.

Consider the alternatives first

A lifetime mortgage should not be the starting assumption. Depending on your needs, alternatives could include using savings, moving to a less expensive home, a standard mortgage, a retirement interest-only mortgage, support from family, or grants for home improvements. Checking your entitlement to benefits is also important.

Your objectives, finances, health, future plans and wishes for your estate should shape the discussion. Sometimes the appropriate outcome is not to proceed with equity release.

Important things to weigh up

• Growing borrowing: when unpaid interest is added to the loan, interest is charged on that interest too. The balance can grow substantially over time.
• Inheritance and future needs: releasing equity reduces what may be left for beneficiaries and the resources available for future needs, including care.
• Benefits and tax: releasing money can affect means-tested benefits and your wider tax position.
• Costs and flexibility: advice, legal, valuation and lender fees may apply. Early repayment charges and restrictions on moving or using your home depend on the product.

Independent legal advice is essential before completing an equity release arrangement.

Frequently Asked Questions (FAQs)

Will I still own my home?

With a lifetime mortgage, yes. Your right to remain in it depends on meeting the contract’s conditions, including maintaining it as your main residence.

Can the debt exceed my home’s value?

Plans meeting Equity Release Council standards include a no-negative-equity guarantee. Provided its conditions are met, you or your estate will not owe more than the sale proceeds after reasonable selling costs. The specific protection must be checked for the recommended plan.

Can I involve my family?

Involving a family member or trusted person is encouraged, if you wish. Your permission is required before your personal information is shared with them.

What does advice cost?

Evermore Mortgage Brokers charges an advice fee of £949 for lifetime mortgage advice. When this is payable and any commission we receive will be explained before you commit. Legal, valuation and lender fees may also apply.

Start with a conversation

Contact Evermore to explain what you would like to achieve and discuss our lifetime mortgage advice service. Take time to consider your options before making a decision.

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Think carefully before securing borrowing against your home. This page provides general information, not a personal recommendation.