Understanding Lifetime Mortgages: A Simple Guide
As we get older, many of us find that most of our money is tied up in our homes. It’s a common situation — you may own your home outright or have just a small mortgage left, but your savings might not stretch as far as you'd like.
That’s where equity release could help.
It’s not right for everyone, but in the right circumstances, it can offer a way to free up some of the money in your home — without having to move out.
Equity release lets you access some of the value locked in your property while still living in it. The most popular type is a lifetime mortgage — which is a special kind of loan that doesn’t need to be repaid until you pass away or move into long-term care.
There’s no need to make monthly repayments unless you want to. Instead, the interest rolls up over time and is usually paid off from the sale of your home later on.
Equity release is usually aimed at homeowners aged 55 or over, who want to:
Boost their retirement income
Help children or grandchildren financially
Pay off debts or an existing mortgage
Make home improvements
Enjoy life a bit more — travel, treat themselves, or simply have peace of mind
It’s important to understand all the pros and cons before making a decision. Equity release isn’t something to rush into — but it can be a helpful option in the right situation.
This depends on your age, your health, and the value of your home. Generally, the older you are, the more you can release.
Some lenders also offer enhanced terms if you have certain medical conditions or lifestyle factors.
We’ll always go through the figures with you carefully — making sure you understand how much you could borrow and what that means for your future.
Yes — with a lifetime mortgage, you stay the legal owner of your home. You can live there for the rest of your life or until you move into long-term care.
If you choose a plan that meets the standards set by the Equity Release Council, you’ll also get a guarantee that you’ll never owe more than your home is worth (this is known as the no negative equity guarantee).
Like any financial product, equity release has things to consider:
It will reduce the value of your estate
It may affect your entitlement to means-tested benefits
The interest can build up quickly if you don’t make any repayments
That’s why proper advice is so important. We’ll always take the time to explain everything clearly, and help you explore all your options — including alternatives, like downsizing or using other savings.
That depends on your goals and your personal situation.
Equity release can offer freedom and flexibility in later life — but it’s not a one-size-fits-all solution. We’ll look at your full picture, including your future plans and any family considerations.
At Chetwood Lloyd, we’re fully independent and fee-free. That means we’re not tied to any lender, and we’ll only ever recommend something if it’s truly in your best interest.
We’ll explain things in plain English, at your pace — and we’re always happy to speak with your family too, if you want them involved.
If you’re curious about whether equity release could work for you, get in touch for a friendly, no-pressure chat.
