By Jeremy Furnell, Later Life Lending Specialist · Reviewed September 2026The short answer
A lifetime mortgage is a mortgage secured against your property whilst you maintain full ownership of your home. Unlike a regular mortgage, you do not need to make any monthly repayments. Instead, interest is added to the total loan and this 'rolls up' over time, which is known as compound interest. The loan and any remaining interest are repaid in full when you, and your partner in the case of a joint mortgage, pass away or move into long-term care.
What you keep
You continue to own your property and will benefit from any increase in house prices in that time. For a couple, the plan ends when the last remaining homeowner passes away. Every product I recommend carries a no negative equity guarantee, which means that your beneficiaries will never owe more than the value of your property, and any outstanding fees will be written off.
Paying the interest, or not
Specific plans allow you to pay back some or all of the interest. New innovation in the market allows flexibility in servicing the roll-up interest: payments can be structured from £50 per month, or 25%, 50%, 75% or 100% of the monthly interest, which ensures more equity remains available within your home.
Taking the money in stages
Many features are available to suit your needs, such as ringfencing a percentage of your property as inheritance or releasing the money in stages. This is known as a drawdown lifetime mortgage, and you will only be charged interest on the money you have received.
Is it the right decision?
If you are thinking about a lifetime mortgage, I will discuss the benefits to you and any drawbacks. These include interest rolling up, which compounds over time, and other charges including lender fees and solicitors' fees. I will tell you about these costs and evaluate whether I believe a lifetime mortgage is the right choice for you. If it is not, I will say so.