Lifetime mortgages are not appropriate for everyone. For some, however, being able to release capital or income from their home can be a huge help.
The amount you can borrow is related to the age of the youngest applicant (usually a minimum of 55), and the loan is repaid on death — or the second death, for a joint mortgage — or if you move permanently into a care home.
There are no restrictions on how you spend the money — it's your choice.
With some schemes the interest "rolls up", so on sale of the property, death or moving into care, the total loan plus accumulated interest is repaid to the lender. You can usually repay early, though there may be penalties for doing so.
The drawbacks need to be understood. If you're on state benefits, releasing equity could affect what you're entitled to. Your income tax position may change, and because the loan is repaid on death, there's an effect on your estate and the inheritance your beneficiaries are expecting.
Because of this complexity, you should discuss your requirements with an appropriately qualified, independent mortgage adviser. For your protection, look for a provider that follows the Equity Release Council standards (formerly SHIP) — including a "no negative equity" guarantee, so you'll never owe more than the value of your home.
Compare equity release & lifetime mortgages
This is general information, not financial advice. A lifetime mortgage is a long-term commitment that reduces the value of your estate and may affect your entitlement to means-tested benefits. Always ask for a personalised illustration and regulated advice. Your home may be repossessed if you do not keep up repayments on your mortgage.