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How Does a Lifetime Mortgage in London Work?

A lifetime mortgage in London offers a unique opportunity for homeowners aged 55 and above to access the value of their property while still maintaining ownership.

This equity release option provides tax-free cash based on your age and the value of your property. Repayment typically occurs when you pass away or move into long-term care. While interest accrues on the loan, many borrowers opt to let it accumulate over time.

A key feature is the absence of monthly payments. Instead, the loan is settled through the eventual sale of your property, even if you’ve never had a traditional mortgage.

However, it’s vital to be mindful that opting for a lifetime mortgage can impact the inheritance you can leave behind and may have implications for means-tested benefits, especially if you choose not to make interest payments.

The Difference Between Lifetime Mortgages and Equity Release in London

While a lifetime mortgage is a type of equity release product, equity release in London encompasses a broader range of financial options. For instance, a home reversion plan is an alternative where you sell a share of your property to a provider in exchange for a lump sum.

Whether you’re considering a lifetime mortgage, a home reversion plan, or other alternatives like a retirement interest-only mortgage, it is highly advisable to consult with a qualified mortgage advisor in London for expert guidance.

Types of Lifetime Mortgage in London

Lifetime mortgages in London are available in two main forms: lump sum and drawdown options. A lump sum lifetime mortgage allows you to access a substantial one-time payment, which results in a larger loan.

In contrast, a drawdown lifetime mortgage enables you to withdraw funds as needed, with interest payments only applied to the amount you’ve taken. This flexibility can be beneficial if you don’t require the entire sum immediately.

When contemplating these lifetime mortgages, you also have the choice of allowing interest to accumulate, which may affect the inheritance received by your family after the property is sold and the loan is repaid.

However, with our Equity Release Council membership, we offer a “No Negative Equity Guarantee.” This means that even if your debt surpasses the property’s value, your estate will not be burdened with additional financial obligations. The excess debt is forgiven when the property is sold.

How is a lifetime mortgage in London repaid?

Once your lifetime mortgage in London concludes, whether due to your passing or moving into long-term care, the borrowed amount is repaid from the sale of your property. Over time, interest may have accrued if you chose not to make regular payments, and this is factored into the final amount.

The responsibility for initiating the property sale rests with your beneficiaries or estate executors, usually within a 12-month timeframe. If the property isn’t sold within that period, the mortgage lender may step in to oversee the sale.

They often consider current market conditions and aim for a fair market price, providing assurance that your family won’t face unexpected financial obligations.

What are the pros and cons of a lifetime mortgage in London?

A lifetime mortgage is a type of equity release product that empowers homeowners to access a lump sum or regular income in exchange for a share of their home’s value. As with any financial product, it’s important to carefully weigh the pros and cons before making a decision.

One of the standout benefits of a lifetime mortgage in London is that it allows you to unlock the equity tied up in your home without the necessity to sell it. This means you can continue to reside in your home while benefiting from the equity release.

Additionally, with a lifetime mortgage in London, there’s no obligation to make monthly repayments. The interest on the borrowed amount is added to the outstanding balance, which is settled when the property is eventually sold, typically after the homeowner passes away or moves into long-term care.

However, there are also disadvantages to consider. The amount you can borrow hinges on factors like your property’s value, your age, and your health. If your health deteriorates or your property’s value decreases, your borrowing capacity may not meet your expectations.

Moreover, since interest accumulates on the borrowed sum, the total owed can grow substantially over time. This could potentially reduce the inheritance you can leave for your loved ones.

Another aspect to bear in mind is the potential impact on your entitlement to state benefits, such as pension credit or council tax reduction. It’s important to engage in a conversation with a specialist advisor who can provide insights into how a lifetime mortgage might affect your unique circumstances.

Speak to a Lifetime Mortgage Advisor in London Today

We offer a free mortgage appointment with a dedicated lifetime mortgage advisor in London to all those who reach out to us regarding equity release in London and lifetime mortgages.

During this meeting, you can delve into your specific situation and determine whether a lifetime mortgage aligns with your needs.

Your assigned mortgage advisor in London will provide a comprehensive explanation of the advantages and disadvantages of a lifetime mortgage, address any questions you may have, and guide you through the application process if you choose to proceed. Your family is also encouraged to participate in the discussion.

Book your free mortgage appointment today, and we’ll assess whether equity release via a lifetime mortgage or perhaps an alternative, such as retirement interest-only mortgages in London, is the right path for you to pursue.

To understand the features and risks, ask for a personalised illustration.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.

How Does Equity Release in London Work?

Equity release in London is a financial option designed for homeowners aged 55 or over. It provides them with the opportunity to access tax-free funds from the equity tied up in their homes. One of the key advantages of equity release is that it typically allows you to retain full ownership of your property.

With most equity release plans in London, you have flexibility in how you access these funds. You can opt to receive the money as a lump sum, providing you with a substantial amount upfront.

Alternatively, you can choose to receive it in smaller increments as and when you need it. This flexibility is especially useful for managing your finances effectively.

It’s important to note that equity release plans involve interest, and the interest can accumulate over time. Therefore, it’s a good idea to seek excellent mortgage advice in London when considering equity release in London.

A knowledgeable mortgage advisor in London can help you make informed decisions to minimise the interest payable and ensure that equity release aligns with your financial goals and needs.

What is Equity Release in London?

Equity release in London is specifically tailored for homeowners who are 55 years old or older. To be eligible, your property must be your primary residence and have a value of at least £70,000.

In cases where the property is jointly owned, the youngest homeowner on the title must be aged 55 or above to qualify for equity release in London.

The amount of tax-free funds you can release through equity release in London depends on several factors. These factors include your age, your health, and the current value of your property.

There are primarily two types of equity release schemes available. The most commonly recommended option is the lifetime mortgage in London, which provides flexibility and various benefits.

The other option is a home reversion plan, which involves selling a portion of your property. It’s essential to carefully consider these options and seek professional advice to determine which one aligns best with your financial situation and goals.

What is a Lifetime Mortgage in London?

A highly recommended form of equity release plan is the lifetime mortgage. This option allows you to access tax-free funds from your home, which can be received either as a lump sum or in smaller portions, depending on your needs.

When you opt for a lifetime mortgage in London, it’s key to understand that you will maintain complete ownership of your home. What sets lifetime mortgages apart is their flexibility.

You have the choice to make monthly interest payments, similar to a standard mortgage, or you can decide not to make any payments, allowing the interest to accrue over time.

Obtaining reliable mortgage advice in London is of utmost importance in this process. Unfortunately, we frequently encounter cases where clients have received subpar advice or advice that is limited to equity release plans.

It’s essential to ensure that your equity release advisor in London provides guidance on the full spectrum of later-life lending solutions and operates independently.

We are among the few companies in London capable of offering advice on the complete range of options while remaining independent. This ensures that you receive comprehensive and unbiased advice tailored to your unique financial situation and goals.

What is a Home Reversion Plan?

A less common form of equity release scheme is the home reversion plan. With this plan, you essentially sell all or a portion of your property at a value below its market worth, in exchange for a lump sum that is tax-free.

The received lump sum can be utilised for various purposes, including funding long-term care if you wish to continue residing in your home.

It’s worth noting that home reversion plans are seldom the first choice recommended, but they can be suitable for specific individuals with the right circumstances and needs.

Is Equity Release in London right for me?

At Londonmoneyman, we belong to a select group of mortgage advisors in London, who have the expertise to consider the complete range of later life mortgage products.

This comprehensive range includes, in order of evaluation, standard mortgages that, in certain cases, can extend up to the age of 85, a diverse selection of specialised retirement interest-only mortgage products (known as RIOs), and lifetime mortgages, which encompass equity release plans.

Our dedicated later life team is dedicated to recommending the most suitable product or combination of products tailored to your individual circumstances. It’s important to bear in mind that equity release is just one option, and there may be other alternatives better suited to your unique needs and situation.

It’s essential to note that equity release plans can only be applied to your primary residence in London, not to secondary homes or buy to let properties. In cases involving secondary homes or buy to let properties in London, standard mortgage options might be more appropriate.

The Application Process

If you’re prepared to move forward with us, we’re eager to connect with you. You can reach out via telephone or conveniently book an appointment online to set up a complimentary consultation, without any obligations attached.

During this consultation, we can delve into the possibilities for equity release in London that suit your needs. Rest assured, we’re here to address all your queries and guide you towards the most suitable path. In our initial conversation, we only require your ages and your address – nothing more.

Additionally, for your convenience, we offer evening calls to accommodate your work or family commitments.

Do I have to make monthly payments with Equity Release in London?

Certainly, when considering lifetime mortgages in London, you have several payment options to choose from. You can decide to make no monthly payments, allowing the interest to accumulate over time, or opt for monthly interest payments, similar to a regular mortgage.

Additionally, some plans offer the choice to pay a set, affordable monthly amount to keep interest costs to a minimum. It’s worth noting that you’ll only pay interest on the amount you release from your property.

For instance, if your lifetime mortgage is approved for £100,000 but you only require £10,000 in the first year, you’ll only pay interest on that £10,000 until you need more funds.

To determine the best approach for your individual situation, it’s advisable to consult with an independent equity release advisor in London, like our team.

To understand the features and risks, ask for a personalised illustration. Equity Release in London may come in the form of a lifetime mortgage or home reversion plan.

A lifetime mortgage in London may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.

A home reversion plan involves selling all or part of your home to a plan provider in exchange for a tax-free lump sum.

Pros and Cons of Equity Release in London

Equity release is often recommended as a lifetime mortgage for individuals aged 55 and above, enabling them to access tax-free funds from their primary residence.

Through equity release, you retain full ownership of your property and have the flexibility to decide whether to make monthly repayments similar to a traditional mortgage or not.

In this article, we will explore the advantages and disadvantages of equity release plans, providing you with a comprehensive understanding of this financial option.

Pros of Equity Release in London

Cons of Equity Release in London

What should be considered first, before equity release in London?

At Londonmoneyman, we take pride in being among the select few mortgage advisors in London who can offer a comprehensive analysis of the entire range of later life mortgage products.

In considering your options, we prioritise the following in order: regular mortgages, which can extend up to age 85 in some cases, a diverse selection of specialised retirement interest-only mortgage products (RIOs), and lifetime mortgages, which include equity release plans.

Our dedicated team specialising in later life mortgages will assess your individual circumstances and recommend the most suitable product or combination of products for you.

It is important to note that equity release is not the sole solution, and there may be other options better suited to your needs and situation.

Please bear in mind that equity release plans only allow you to release equity from your primary residence, not from a second home or buy to let in London. In such cases, regular mortgage options may be more appropriate.

How Clients Use Equity Release Funds

Our clients opt for equity release in London for various reasons, with the most common ones being home improvements, managing finances after a late-life divorce, paying off an existing mortgage, providing financial assistance to family members, and supplementing pension income.

Equity release plans offer flexibility, allowing you to receive the funds either as a lump sum or in smaller installments as needed. Our dedicated team of equity release advisors in London will carefully assess your situation and provide tailored recommendations to guide you in choosing the most suitable approach.

The Equity Release Process

To get started, simply book your free consultation with our experienced later life team. You have the option to book this either by phone or online at your convenience.

During this session, we will address all of your inquiries, provide insights into the available products, discuss associated fees, and determine the maximum amount you can release.

If you decide to proceed with us, your advisor will arrange a subsequent meeting to delve deeper into the details and ensure everything is thoroughly prepared for your application.

Throughout the process, our goal is to minimise stress and make it as seamless as possible for you. We will assist you every step of the way, from coordinating with solicitors to navigating any valuation or legal requirements that may arise.

Involving Your Family

We understand that making the decision to pursue equity release is significant, and we believe it’s important to involve family members right from the beginning. Their support and involvement can be invaluable during the application process, as they often have important questions and insights.

By including your family members in the discussions, you can gain reassurance that you have chosen the right company and ensure everyone understands the advantages and considerations of the plan.

We welcome and encourage your family members to participate in the process, as they may have their own inquiries and concerns. Our video software allows for seamless inclusion of multiple family members during calls and discussions, making it convenient and easy for everyone to be involved.

Book a Free, No-Obligation Consultation!

If you’re ready to move forward, we are here to help you every step of the way. You can reach out to us by phone or book an appointment online to schedule a free, no-obligation consultation focused on exploring your later life mortgage options.

During this consultation, we will address all your inquiries and provide personalised recommendations tailored to your specific circumstances. You don’t need to prepare anything in advance for the call – simply provide us with your ages and address.

To accommodate your busy schedule, we offer evening calls as well, ensuring that we can find a convenient time that works around your work or children’s commitments.

To understand the features and risks, ask for a personalised illustration. Equity Release in London may come in the form of a lifetime mortgage or home reversion plan.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.

A home reversion plan involves selling all or part of your home to a plan provider in exchange for a tax-free lump sum.

Why Choose us as your Remortgage Advisor in London?

Is your mortgage deal coming to an end? Are you looking for a replacement deal to switch over too? If so, your Remortgage Advisor in London is here to help!

Whether you’re looking to Remortgage in London to save money or to raise capital for one reason or another, then you’ve come to the right Mortgage Broker in London. We have been helping customers find outstanding remortgage deals for 11 years now, we know exactly what to do to find you an amazing deal.

For some borrowers, remortgaging can be a great way to improve your financial situation as it may give you the option to consolidate any short-term debts.

Remortgage Advisor in London

Getting Remortgage Advice in London could be within your best interests as you will receive full guidance and support from an expert Remortgage Advisor rather than doing it by yourself. A Mortgage Broker in London like us, will not only help you secure a deal they will try and help you save money in areas you didn’t think you could.

Common Remortgage Scenarios

Having worked within the mortgage industry for over 11 years, we have come across almost every single remortgage scenario. Here are some that we regularly come across:

Reasons to choose Londonmoneyman as my Mortgage Broker in London

With the introduction of the new mortgage market regulations in 2014, it became much harder to Remortgage without the help from a Mortgage Broker in London. People find it hard because of the sheer amount of mortgage types out there and it’s often hard to qualify for every single one of them. Also, people don’t really know the differences between the mortgage types whereas a Mortgage Advisor will and can tell you the difference between each of them and which one will suit you the best.

We work for you

We also work for you, we are not tied to any particular estate agents or lenders. We always have your best interests at heart, our aim is to try and find you a great mortgage deal based on your personal and financial situation.

Your experienced Mortgage Broker in London is not just here to get you a remortgage deal, we are here to support you through your remortgage journey, taking all of the stress off your back and making the process run as smooth as possible. We want the best for you and for you to come out smiling, knowing that you’ve received an excellent mortgage advice service that ended with you securing an amazing remortgage deal.

As your Remortgage Advisor in London, we are here for you 7 days a week. You can get in touch whenever you want, we work around you. We also offer a free initial mortgage consultation, so make sure to get in touch as soon as you can!

Capital Raising Mortgage Advice in London

Specialist Mortgage Advice in London

If you have been doing your research on the world of mortgages or more specifically have been having a look at what your potential options for taking out a remortgage in London, you may have come across the term “capital raising” before.

Understandably, some may be confused as to what capital raising actually is. Simply put, capital is money, which means that capital raising is the financial terminology for the act of raising money.

There are a variety of different ways that this can be achieved and it is used for all manner of reasons.

Capital Raising Methods 

Remortgage to Release Equity 

As a general theme amongst conversations we have with existing homeowners, is that they would not only like to remortgage, but they would like to do so as a way to release equity for things like home improvements, to gift a deposit or something else.

If you are not too sure what equity is; Equity is the difference between your remaining mortgage balance and the amount that the property is valued at.

Further Advance Mortgage 

If during your term your property has increased in value, rather than enquiring about a remortgage to release equity, you may have the option of utilising something called a further advance.

This type of mortgage allows homeowners to take out an additional mortgage on their property to borrow an additional amount, as a way to release a portion of equity they have built up over time.

Further advances are typically taken over longer terms and have lower interest rates than standard personal loans, though you will also have to bear in mind that you will not only be paying back your primary mortgage, but also this as well.

Both these mortgages are separate from one another, the further advance is not added onto the first mortgage. This is two individual mortgages with the same lender, on the same property, with their own interest rates.

This mortgage type is something that can be a really good option for homeowners who perhaps don’t wish to remortgage or are tied into a deal so can’t remortgage. Remember the risks though, one of which being that there will be a higher risk of repossession if you cannot keep up your payments.

Second Charge Mortgage 

A second charge mortgage is a little similar to a further advance, allowing you to once again having another smaller mortgage running alongside your existing one, allowing you to release some equity.

The biggest difference between a second charge and a further advance, is that second charges are actually with a different mortgage lender and also have different interest rates.

If you were in an unfortunate circumstance where you were faced with repossession, your initial mortgage lender will be paid back from your homes sale, with any funds remaining from that sale then going to the second lender (but again, only after the first mortgage lender is completely paid back).

Capital Raising Mortgage Reasons

There are quite a few different reasons as to why you may find yourself in the market for something that allows you to capital raise against your home.

Popular options for achieving this include to fund any home improvements you would like to make, such as an extension, new home office or maybe even loft/garage conversions. We also often hear people wanting to consolidate unsecured debts against their home.

Other instances where a homeowner may look to capital raise, is to perhaps gift a deposit to their children so they can get onto the property ladder, to buy a second home/property (common with those looking to start with a Buy to Let in London), and to pay for larger purchases.

Saving Your Time, Saving Your Money

If you have any portion of equity sitting within your property and are in the market for a capital raising mortgage, then you could be most suited for a remortgage to release equity. Of course our trusted mortgage advisors in London will make sure this is right for you before proceeding.

Book your free mortgage appointment and we will review your case to determine the most appropriate course of action. If a remortgage isn’t right for you, there may still be an alternative that fits what you are looking to achieve.

If you are aged 55+ and have a property worth at least £70,000, you may find yourself better suited for the option of equity release in London

To understand the features and risks of equity release, ask for a personalised illustration. Our typical advice fee is up to £1,495 only payable on completion.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.

** With Debt Consolidation there are some risks to bear in mind. That is why we always recommend you speak with a qualified Mortgage Advisor in London, before you look at consolidating any unsecured debts against your property. & Londonmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.

UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at

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