What Is A Lifetime Mortgage?

Lifetime Mortgage Guide

In 2026, lifetime mortgages are more flexible than many older equity release plans, with some providers offering drawdown, voluntary repayments, interest-serviced options and inheritance protection. However, they still affect the value of your estate and should only be considered after regulated advice. 

A lifetime mortgage differs from a traditional mortgage in that it doesn't have a set date to repay the loan and you don't need to make monthly repayments. Instead, the loan amount plus all the interest that has built up over the years is paid off when you die or leave your home to go into long-term care.

You can choose to take the loan as a single lump sum or an initial lump sum with a cash facility to draw down on.

If you've owned your home for a long time, it's probably risen significantly in value over the years. Value that could be unlocked to make your life that bit easier.

Of course, equity release is a big decision and will not be the right choice for everyone. For this reason, lifetime mortgages are only available through qualified equity release advisers whose job it is to ensure you understand all the pros and cons before committing to anything.

To help decide if a lifetime mortgage could be an option for you, we've created this straightforward guide.Lifetime mortgages explained

Lifetime Mortgages Explained

This lifetime mortgage guide will help you understand:

1. How a lifetime mortgage works

2. What types of lifetime mortgage are available?

3. The lifetime mortgage lending criteria 

4. The costs of a lifetime mortgage 

5. How safe are lifetime mortgages?

6. How long does it take to set up a lifetime mortgage?

How Does a Lifetime Mortgage Work?

What you need to know about lifetime mortgages:

• A lifetime mortgage has no fixed term or end date, hence the name.

• You take a percentage of the equity in your home as a loan secured against the property, while continuing to live in it.

• The money you release is tax-free.

• You still own your home and will benefit from any increases in its value over the years.

• How much you can borrow depends on your age and your home's value. Minimum age is usually 55 years. Most lenders stipulate a minimum loan amount, typically around £10,000. You may be able to borrow more if you have a serious health condition.

• You can choose to take all the cash as a lump sum or hold some in reserve and draw on it as and when you need it. You are only charged interest on the amount you withdraw.

• You are not required to make any repayments. Instead, compound interest is added to the loan plus all previous interest, so the amount to be repaid grows over time. To lessen the impact of this, many lenders allow you to repay the interest each month or make partial repayments along the way.

• A lifetime mortgage is repaid when the last surviving mortgage holder dies or moves into long-term care. At this point, your home is usually sold and the loan paid off from the sale proceeds (although it can be paid off by other means). Any money left over will go to your beneficiaries.

• If the proceeds of the sale are not enough to pay off the lifetime mortgage, your beneficiaries will never have to pay back more than the value of your home. This is an Equity Release Council standard known as the no-negative equity guarantee.

• If your financial circumstances change and you choose to pay off a lifetime mortgage early, you may have to pay an early repayment charge, which could be considerable.

• You can choose to ring-fence some of the value of your property as an inheritance for your family.

• Lenders have different criteria, so it is worth comparing plans carefully before applying. 

Types of Lifetime Mortgage

There are five types of lifetime mortgage, although names will vary between lenders:

1. Roll-up lifetime mortgage

With a roll-up lifetime mortgage, you make no monthly repayments and interest is charged on the total amount of the loan, which includes all the interest that has already built up. The amount you originally borrowed plus all the rolled-up interest is repaid when you die or move into long-term care.

2. Repayment lifetime mortgage

With a repayment lifetime mortgage, you make voluntary monthly or ad hoc payments to reduce the impact of interest roll-up. Some lenders allow you to pay off some of the capital, but there are usually limits to how much you can repay without penalty and how often you can make repayments. The remaining balance is repaid when you die or move into long-term care.

3. Interest-only lifetime mortgage

With an interest-only lifetime mortgage, you repay the interest each month so the amount you borrow never goes up. You can stop making repayments if you wish, in which case the interest will be added to the loan. The remaining balance is repaid when you die or move into long-term care.

4. Drawdown lifetime mortgage

A drawdown lifetime mortgage is a lifetime mortgage with a cash reserve. This facility gives you the flexibility to access your cash when you need it rather than taking it all in a lump sum at the start. You only pay interest on the cash you withdraw, not the cash in reserve.  The amount you have withdrawn plus interest is repaid when you die or move into long-term care.

5. Enhanced lifetime mortgage

With an enhanced lifetime mortgage, if you or your partner are living with certain medical conditions, you may be able to release a larger amount from your home and could be eligible for a reduced interest rate.

For more information on the types of equity release available visit the Equity Release Types page.

How Lifetime Mortgages Work in Practice

The basics of a lifetime mortgage are straightforward, but the long-term impact depends on how the plan is set up.

For example, taking one large lump sum may be useful if you need to repay an existing mortgage or fund a major expense. However, interest starts building on the full amount from the beginning. A drawdown plan can be more cost-effective if you only need some of the money now, because interest is only charged on the money you actually withdraw.

Repayment flexibility is another important difference between plans. Some lifetime mortgages allow you to make voluntary repayments, pay some or all of the monthly interest, or repay part of the capital each year without early repayment charges. This can help reduce the effect of compound interest, but payments should only be made if they are affordable.

It is also worth thinking about future plans before choosing a product. You may want to move home, help family later, protect some inheritance or keep borrowing options open. Some plans offer features for this, but the rules vary by lender.

A lifetime mortgage should therefore be judged on more than the amount you can release. The interest rate matters, but so do the repayment options, drawdown facility, early repayment charges, inheritance protection and portability if you move home.

Lifetime Mortgage Providers in 2026

There are several lifetime mortgage providers in the UK, and each one has its own plan features, interest rates, repayment options and lending criteria. The amount you can borrow will usually depend on your age, property value, health, existing mortgage balance and the provider’s current rules.

Some of the best-known lifetime mortgage providers include Legal & General, Aviva, Canada Life, LV=, Just, More2Life and Pure Retirement. Not every provider offers the same level of flexibility, so it is important to compare more than the interest rate.

Legal & General

Legal & General is one of the UK’s major later life lending providers. It offers lifetime mortgage options for homeowners aged 55 and over, as well as a Payment Term Lifetime Mortgage for eligible customers aged 50 and over.

The Payment Term Lifetime Mortgage is different from a traditional roll-up lifetime mortgage because it requires monthly interest payments for an agreed period. After that, the loan moves into a roll-up structure. This may suit some borrowers who want access to later life lending from age 50, but it also means affordability is an important part of the application.

Aviva

Aviva is one of the most recognised names in the UK equity release market. Its lifetime mortgage plans allow homeowners to release tax-free cash while continuing to live in their home.

Aviva may appeal to borrowers who want an established provider with a long track record in financial services.

Canada Life

Canada Life offers lifetime mortgage products designed to give homeowners flexibility around how they access and manage the money released.

In 2026, Canada Life launched its Advantage range, which offers discounted interest rates where customers agree to make set monthly interest payments. This may appeal to borrowers who want to reduce the effect of compound interest, provided the payments are affordable and sustainable.

LV=

LV= offers later life mortgage products, including lifetime mortgage options. Its plans may be suitable for homeowners looking for a provider with experience in retirement and protection products.

When comparing LV= with other lenders, consider whether the plan offers drawdown, voluntary repayments, inheritance protection or fixed early repayment charges. These features can make a significant difference to the long-term cost and flexibility of the mortgage.

Just

Just, formerly known as Just Retirement, is an established provider in the later life lending market. It offers lifetime mortgage products that may include options for people with health or lifestyle factors that affect borrowing.

These are sometimes known as enhanced lifetime mortgages. In some cases, health or lifestyle information may allow a borrower to release more, access different terms or qualify for a product that better reflects their circumstances.

More2Life

More2Life is a specialist lifetime mortgage lender that offers a range of products through advisers. Its plans may include features such as drawdown facilities, inheritance protection and voluntary repayment options.

More2Life may be relevant for homeowners who want flexibility rather than a simple lump sum plan. Product features can vary across its range, so the details should be checked carefully before deciding.

Pure Retirement

Pure Retirement is a specialist equity release provider offering lifetime mortgage products through advisers. Its plans are often designed around choice and flexibility, with different borrowing levels and repayment features available across the range.

Pure Retirement may suit borrowers who want adviser-led access to specialist lifetime mortgage products.

Royal London

Royal London offers lifetime mortgage products through advisers. Its plans are designed for homeowners who want to release equity while retaining ownership of their home.

As a mutual provider, Royal London may appeal to borrowers who value a member-focused structure. As with any provider, the product details should be compared through a qualified adviser.