What Can I Use a Lifetime Mortgage For?
A lifetime mortgage is a long-term loan secured against your property, for individuals over 55. You can take a single lump sum or opt for a drawdown plan, releasing ad-hoc smaller amounts of money when you need it, and whatever you borrow will usually be repaid at the time of your death or if you move into long-term care.
Whether you are looking to pay off debts, support loved ones, pay for care, or simply want to enjoy a more comfortable lifestyle, equity release can offer flexible options tailored to your needs. Read on to find out more about the ways a lifetime mortgage can be used, based on real-life examples.
Paying for care
Sue and Harry, aged 77 and 81, live in a London property worth £1.5 million and have recently seen Sue’s health start to decline. Harry is finding it increasingly hard to provide the care she needs, and they are keen to avoid downsizing or going into care. Instead, they plan to fund home care support and adaptations by releasing a lump sum from their property, with a drawdown option for future needs.
Asset-splitting in divorce
Claire and George, both aged 73, are currently going through a divorce. Claire wishes to stay in the marital home in North Yorkshire and George has agreed to move out. Claire requires £140,000 to settle payment with George and pay for legal fees - she has some savings, but not enough to pay the remainder of the balance. She requires a cash lump sum to pay George to remain in her home.
Supporting loved ones financially
Steve and Janice, aged 60 and 58, are looking into options to fund their son’s university tuition fees. They are not planning to retire for a number of years, they don’t want to interrupt paying into their pensions but want to help their son go to university without the burden of student loans. Their property is worth £500,000 and they are considering a drawdown lifetime mortgage to spread the funds over five years.
Paying off debts and home improvements
Gavin and Carmen, aged 68 and 60, have been married for five years and live together in Gavin's detached house in the Midlands. Gavin has some credit card debt which he has found difficult to clear since retiring and also wishes to make some home improvements. He requires £99,000 in total, but as he is retired and Carmen only works part-time they do not have enough combined income to cover these costs, and therefore need to free up some cash.
Buying a new car
Chris and Anita, aged 70 and 75, live in a 4-bedroom detached house in Leeds. As Chris’s car is old and diesel, he wants to buy a brand-new electric car, and following the birth of their fourth Grandchild, the need for a bigger car has become more pressing. While they both still work part-time, they are looking to free up some cash from their home to help fund the purchase.
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