A lifetime mortgage in Leicester allows you to release some of the value tied up in your property, either as a lump sum or through a series of smaller withdrawals.

It is a popular choice for customers aged 50 and over who want to boost their retirement income, help family members, or fund home improvements.

Like any financial product, a lifetime mortgage comes with both advantages and disadvantages to think about carefully before proceeding.

What is a lifetime mortgage?

A lifetime mortgage is a type of equity release product that enables you to borrow against the value of your home while continuing to live in it.

The loan is usually repaid when the property is sold, typically after you pass away or move into long-term care.

Unlike a standard mortgage, there are usually no monthly repayments to make unless you choose to do so. Interest builds up over time and is added to the amount you owe.

For this reason, it is important to understand how the product works and what it means for your estate in the future.

Potential Benefits Of a Lifetime Mortgage

One of the main attractions of a lifetime mortgage is that it gives you access to tax-free cash without needing to sell your home.

Many customers use this money to enhance their quality of life in retirement, clear existing debts, or support children or grandchildren financially.

The flexibility of modern lifetime mortgages has improved greatly.

Some products allow you to make voluntary repayments to help manage the interest that builds up. You also retain ownership of your property and can continue living there for as long as you wish.

For some, using a lifetime mortgage as part of their wider retirement planning offers peace of mind and greater financial flexibility.

Important Considerations

It is essential to weigh up the potential downsides before committing to a lifetime mortgage.

The most important is that the amount you owe will increase over time if you choose not to make repayments.

This could reduce the value of your estate and the inheritance you leave behind.

Taking advice is critical.

Seeking equity release advice in Leicester from a qualified mortgage advisor will help you understand the full implications, including how the loan may affect your entitlement to means-tested benefits.

A lifetime mortgage is not suitable for everyone, and it is important to explore all options before deciding if it is the right choice for you.

Date Last Edited: June 13, 2025