A lifetime mortgage is a first-charge loan on the borrower's main residence. Interest is normally fixed for the life of the loan and, where no payments are made, is added to the balance and compounds. Products within Equity Release Council standards carry a no-negative-equity guarantee, so the estate never owes more than the property realises on sale. The maximum advance is determined by the age of the youngest borrower and the property valuation.
Client-friendly explanation
You borrow against your home at a fixed rate. If you make no payments, interest is added to what you owe and grows over time.
Last verified 2026-09-13 · Effective from 2026-09-13 · sample
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