29/10/2026
Equity release, also known as a Lifetime Mortgage for over 55s (not to be confused with raising equity from a normal remortgage), is something that is a very niche area of lending. A lot of thought should be put into this before applying for this type of mortgage. Here's Chloe talking about what people typically use the funds for.
A Lifetime Mortgage will reduce the value of your estate and may affect your
entitlement to means-tested benefits and tax status.
The impact of not servicing monthly interest payments on a Lifetime Mortgage is that the outstanding debt can grow rapidly, thus reducing the value of your estate.
For example, if the interest rate was 7% a year, a £50,000 loan would double to
£100,000 after 10 years assuming no repayments are made.
This is an example for illustrative purposes only and personalised advice and
recommendations should be sought from a qualified professional. You are strongly advised to register a lasting power of attorney. This will allow your affairs to be managed by somebody else if your mental abilities significantly decline.
