A lifetime mortgage is a flexible way to unlock the value of your home and release a cash lump sum, tax-free from your property. Our advisors are here to guide you step-by-step through this process.
A lifetime mortgage is a particular mortgage product secured against your property to release a cash lump sum which you can then use for a range of financial reasons.
Whether you are looking to pay off an existing mortgage or other debts, make home improvements, provide an early inheritance, make a key investment or a combination of the above, a lifetime mortgage can give you the opportunity to do just that. Our friendly team of independent advisors will be with you every step of the way to make sure you find a lifetime mortgage that is entirely suited to you and your situation. We can help you make a clear plan for your future, with expert advice and opportunities across a wide range of lifetime mortgage providers.
At Derbyshire Equity Release we are qualified in and have extensive experience of standard and residential mortgages, as well as lifetime mortgages, so we will help establish whether a lifetime mortgage is the right thing for you, or if there are any other options available. To help you make your decisions, we will ensure you understand both the short-term and long-term costs, risks and benefits involved. As members of the Equity Release Council, you can also be confident that you are safeguarded and can receive a no negative equity guarantee in the products we recommend to you.
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Lifetime Mortgage Guide
If you’re after some more information, our downloadable Lifetime Mortgage Guide goes into detail about all of the things you might need to consider when looking for a lifetime mortgage.View our guides
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Tony and Barbara’s two children both lived in rental properties and as a result, did not have the money needed each month to save up a deposit so they could buy their own homes. They wanted to give their children an early inheritance and help them onto the property ladder. A lifetime mortgage enabled them to help their children become property owners.Tony & Barbara
Joe and Mary had an interest only mortgage and their bank was asking for the balance to be repaid which they had no way to do. They also wanted to complete some improvements like new windows and a downstairs wet room to make their home comfortable and safe. They used a lifetime mortgage to clear the mortgage and raise the extra funds they needed.Joe & Mary
Bob and Anne did not wish to sell their home and downsize - they loved where they lived due to its proximity to the shops, their family and had lovely neighbours. However, they wanted to buy a static caravan for their holidays and couldn’t afford the monthly payments available through finance offered from the caravan dealer. They used a lifetime mortgage to raise the money needed to buy their caravan which both they and their children could use for very many years to come.Bob & Anne
1. What is a lifetime mortgage?
A lifetime mortgage is a type of mortgage secured against your home in order to release a tax-free cash lump-sum that can then be used for a wide range of personal financial reasons. Lifetime mortgages are only available to those aged 55+ and are intended as a long-term loan to provide peace of mind in your later life.
2. How much can I borrow?
The maximum amount you can borrow with a lifetime mortgage depends on your property value, your age and your health. It might be tempting to borrow the absolute maximum amount a lender will allow you to, but we highly recommend you don’t borrow any more than is needed. Higher mortgages often attract much higher interest rates that can have a big impact on the remaining value of your estate.
3. Should I refinance?
People refinance their homes for a number of reasons, from clearing debts, assisting with divorce or separation, helping children onto the property ladder, buying new cars and undertaking home improvements. The most important first step is to work out exactly how much money you need and exactly when you need it. Each person’s financial situation will be different, and so the mortgage product you require will be different too.
4. The application process
We believe mortgages should be as stress and hassle free as possible, whether it’s your first mortgage or your tenth, so we complete your mortgage application for you. We will make sure the right documents and information are where they need to be at the right time, and we’ll walk you through the process every step of the way to make sure you understand everything that is happening.
Lifetime Mortgage Help!
If you still have questions about lifetime mortgages, you might be able to find the answer here or in our Lifetime Mortgage Guide. If you want to talk more about your personal situation, just give us a call any time.
What is a lifetime mortgage?
A lifetime mortgage is finance secured against your property. By taking out a lifetime mortgage, you will receive a tax-free cash lump-sum that you can use for many different reasons, including repaying an existing mortgage, home improvements, providing an early inheritance, paying off debts, buying a new car or caravan or divorce settlements.
Should I get a lifetime mortgage?
One thing we have learnt after many years in the industry is that one mortgage does not fit all. You, your home and your financial situation is entirely unique, and taking out a lifetime mortgage is a big financial commitment with long term impacts. Before making any decisions, we highly recommend you fully assess what you need the money for and when, and what other options may be available to you. If you’d like some personalised advice, you can get in touch with us to discuss your mortgage situation further and whether a lifetime mortgage, or another mortgage type, may be well suited to you and your home.s
How much can I borrow?
The maximum amount you can borrow depends on the value of your property, your age and your health. The older you are, the more of your property value you may be able to take, but this can also attract higher interest rates. We highly recommend you only take the amount you need rather than the maximum, although we know it’s tempting! If you take the maximum, the higher interest rates can seriously erode the remaining value in your estate.
How do I get a lifetime mortgage?
If you’re ready to take your first step to a lifetime mortgage, you just need to get in touch with us. As an independent mortgage broker, we have access to a wide range of lifetime mortgage products so we can best assess which is right for you and your situation. We also take care of the entire application process for you, making sure the right information and documentation is where it needs to be, and guiding you along every step of the way.
Will I owe more at the end than my home is worth?
As long as the lifetime mortgage you take is approved by the Equity Release Council, you will automatically benefit from a no negative equity guarantee. This means you will never owe more than the value of the property. As members of the Equity Release Council we will always work with you to make sure that you are never at risk of negative equity.
What will my monthly repayments be?
They can be zero! Most lifetime mortgage plans will not commit you to making any payment at all, but allow the flexibility to do so if you wish. It is worth keeping in mind that if you make no payments at all, the interest of your lifetime mortgage will continue to accrue and so reduce the remaining value of your estate.
Will I lose my state benefits?
Some benefits can be affected by releasing equity in your home. We recommend you speak with the Citizen’s Advice Bureau who can understand how much money you are taking, what for and when, and then explain to you the impacts this could have on the benefits you currently receive.
Will my beneficiaries still receive anything when I die?
No matter what lifetime mortgage you take, the value of your estate left to your beneficiaries when you die will always be impacted. However, we will work with you assess your home and your situation to ensure that as much value is retained in your property as possible while taking out a lifetime mortgage.
Will I lose my home?
No! The benefit of a lifetime mortgage is that you retain full ownership of your home, just as with a standard mortgage, and providing you stick to the terms and conditions of your mortgage product you will also not be at risk of repossession.
If I’ve already got an existing mortgage, can I still take out a lifetime mortgage?
Depending on how much you need and the outstanding balance of your existing mortgage, you may be still be able to take out a lifetime mortgage. You may be able to take enough equity to clear your existing mortgage and give you the extra funds you require. If you’ve been making payments on an existing mortgage, this requirement can also be built into your new lifetime mortgage to help reduce the impact of accruing interest on the balance.
I don’t have any money to the pay the fees involved – can I overcome this?
Many lifetime mortgages will allow you to add on the fees involved, or deduct them from how much you take. This means there’s nothing for you to pay upfront.
Can I still move home in the future?
Yes! A very common concern of lifetime mortgages is that you are stuck in the same home you take the mortgage out against, but if you want to factor in moving house then we can help you to do this. For example, if you would prefer to live somewhere smaller should your spouse pass away we can help you find a plan that will allow you to move the lifetime mortgage to a new property.
Aren’t the interest rates really high?
The interest rates for lifetime mortgages are generally higher than for standard mortgages. However, many people are still surprised to see how low the rates are. Interest rates can also be affected by your age and how much you wish to borrow, so we can work with you to try and mitigate this cost where possible.
We care about your home as much as you do
Let us help you find a lifetime mortgage tailored to your life.