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What is a lifetime mortgage?
A lifetime mortgage is a type of equity release which is a loan secured against your home. It lets homeowners aged 55+ release some of the tax-free funds tied up in the value of their home. A lifetime mortgage could help you boost your retirement finances.
What can I use a lifetime mortgage for?
The money you unlock through a lifetime mortgage is tax-free. You can use it in several ways, such as:
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Repay your existing mortgage
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Support your loved ones
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Boost your retirement finances
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Make home improvements
Ready to get started?
See how much you could release tax-free with Key's award-winning equity release service
Calculate now
ⓘ Be financially aware. Equity release comes with drawbacks which are important to think about.
ⓘ Be financially aware. Equity release comes with drawbacks which are important to think about.
There are usually no monthly repayments to make with a lump sum or drawdown lifetime mortgage. The loan, plus compound interest, is usually repaid through the sale of your property. This is generally when the last remaining applicant on the deeds passes away or moves into long-term care.
If you want to reduce the long-term cost of your plan, you can make voluntary payments of up to 10-12% each year without any early repayment charges.
Benefits and drawbacks of equity release
Watch our video to learn more about the benefits and drawbacks of equity release and see if it could be right for you.
Video transcript (pdf)
Explore our tools and guides
Is a lifetime mortgage safe?
Lifetime mortgages we recommend come with a range of safeguards and protections.
In addition, Key is a proud member of the Equity Release Council, which is a trade body with high standards of conduct within the equity release market.
All lifetime mortgages we recommend meet the Equity Release Council standards, meaning you'll:
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Never owe more than your home's value
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Have the right to move home, subject to criteria
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Have the right to stay in your home for life
Watch our video to find out about the safeguards and protections included with lifetime mortgages we recommend.
Useful links:
Representative example
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AER stands for Annual Equivalent Rate. It shows what the interest rate would be if the interest compounded each year.
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APR stands for Annual Percentage Rate. It's the cost you pay each year to borrow money, including fees, expressed as a percentage.
Our lifetime mortgage calculator will give you an idea of how much you could release. Your equity release adviser can give more information on interest rates.
Calculate nowLearn more about lifetime mortgage costs
Is a lifetime mortgage right for me?
If you're thinking about a lifetime mortgage, it's important you have all the facts. You have to get advice from a qualified equity release adviser before you apply for a lifetime mortgage. It’s a regulatory requirement. Your adviser will review all your later life finance options to find the most suitable one for you. And if a lifetime mortgage isn't right for you, we'll tell you.
Am I eligible for a lifetime mortgage?
To be eligible for a lifetime mortgage through Key, you must be a UK homeowner:
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Aged 55+ (including all joint applicants)
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With a property worth £70,000+
Your other options with Key
If another product is more suitable, we'll refer you to a different specialist adviser within Key Group who can help. If you go ahead, you'll never be charged more than our standard fixed advice fee of £1,699, even if their fee is higher. Key offers alternatives to a lifetime mortgage such as a retirement interest-only mortgage or retirement repayment mortgage.
Other options to think about
It's important to know your other options before going ahead with a lifetime mortgage. These include: home reversion, downsizing, unsecured lending, using existing assets, or support from friends or family.
Not eligible for a lifetime mortgage?
If you're not eligible now, try our later life mortgage finder. We could still help you take control of your retirement finances.
Free lifetime mortgage guide
If you're thinking about a lifetime mortgage, it's important you have all the facts.
Download your free, comprehensive guide today to see if it could be right for you.
Why choose Key as your lifetime mortgage adviser?
Key is a specialist, award-winning lifetime mortgage adviser for the over 55s. We could help turn your property wealth into a way to fund your retirement. We research all later life mortgage options and provide trusted, expert advice that's personal to you.
ⓘ Our £1,699 advice fee is only payable if you go ahead with a lifetime mortgage.
Next steps to start your lifetime mortgage journey
We're here to help you
Our friendly equity release team is available: Mon-Thurs 9am-8pm, Fri 9am-5pm, Sat 9am-1pm, Sun closed.
Call free on 0808 252 9170 or book a call and we'll get in touch with you.
Page last updated: Wednesday 05 February 2025