If you’re exploring ways to unlock money from your home later in life, you might be wondering: what’s a lifetime mortgage?
If you’re exploring ways to unlock money from your home later in life, you might be wondering: what’s a lifetime mortgage? Or more specifically, how does a lifetime mortgage work?
We’re here to break it down clearly and simply.
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A lifetime mortgage is a type of later life mortgage. It’s a loan secured against your home that lets you release some of the equity (value) you’ve built up—without needing to move or make monthly repayments.
You keep full ownership of your home, and the loan (plus any interest) is repaid when you pass away or move into long-term care. That’s why it’s called a “lifetime” mortgage—it lasts for the rest of your life.
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Think of it as a way to turn your home’s value into cash. You can use the money for almost anything: home improvements, helping family, topping up your retirement income, or just enjoying life a little more.
The amount you can borrow depends on things like your age, your home’s value, and your health.
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Whether you call it a later life mortgage or a lifetime mortgage, the idea is the same:
• You don’t make monthly repayments (unless you choose to).
• Interest is usually “rolled up”, meaning it’s added to the loan each year.
• The loan and interest are paid back when your home is sold—usually when you pass away or go into care.
Some plans even let you protect a portion of your home’s value to leave as inheritance.
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Lifetime mortgages are regulated in the UK and must follow strict rules designed to protect you. They’re available to homeowners aged 55 and over, and they come with guarantees like:
• You’ll never owe more than your home is worth.
• You can stay in your home for life.
At Chetwood Lloyd Mortgages, we offer independent, fee-free advice—so you get the full picture, with no pressure and no cost to you.
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To sum it up:
• A lifetime mortgage lets you release tax-free cash from your home.
• You keep ownership and stay living in your home.
• You don’t need to make repayments unless you want to.
• The loan is repaid from your home’s sale later on.
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Lifetime mortgages aren’t for everyone. That’s why speaking to an expert matters. We’ll help you understand all the pros and cons, explain alternatives, and guide you to the right choice for your situation.
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Book a free chat with one of us. No jargon. No pressure. Just clear, honest advice about lifetime mortgages and what’s best for you.
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