A lifetime mortgage in Durham is a type of later-life loan secured against your home.

It allows eligible homeowners to release some of the equity built up in their property without the need to move.

The loan does not need to be repaid until you either pass away or move into long-term care.

At that point, the property is typically sold, with the proceeds used to repay the outstanding balance.

A lifetime mortgage can give you access to funds that can be used for a wide range of purposes, from home improvements and paying off debts to helping family members or supplementing your retirement income.

How does a lifetime mortgage work?

Before applying for a lifetime mortgage in Durham, you must meet the eligibility criteria.

You will need to be at least 55 years old and own a property worth at least £70,000.

There is no requirement to have an existing mortgage in place.

The first step is to speak to a qualified later life mortgage advisor in Durham.

They will take the time to understand your circumstances and help determine whether a lifetime mortgage or another option is the right choice for you.

There are two common types of lifetime mortgage:

  • A lump sum lifetime mortgage allows you to release your funds all at once, giving you access to a single, larger payout.
  • A drawdown lifetime mortgage provides a flexible facility that allows you to release funds in stages, as and when required. Interest is only charged on the amounts you draw down.

With both options, you can choose to let the interest roll up over time or make voluntary repayments to help manage the amount owed.

It is important to remember that allowing interest to build up will reduce the amount of equity remaining in your home. This can affect the value of any inheritance you wish to leave behind.

Our expert mortgage advisors in Durham can help you plan carefully for this, including exploring whether you wish to ring-fence a portion of your equity for your family.

Modern lifetime mortgages also include important safeguards.

Thanks to standards set by the Equity Release Council, products now include a no-negative equity guarantee.

This means your estate will never be required to repay more than the value of the property when it is sold.

Pros And Cons Of A Lifetime Mortgage

As with any mortgage product, there are both advantages and things to consider when it comes to a lifetime mortgage.

Flexibility is one of the main positives. You can choose whether to release your funds all at once or in stages, and many products now allow voluntary repayments if you want to help manage the interest that builds up.

You will remain the owner of your home and continue to live there for as long as you wish.

It’s important to understand that allowing interest to accumulate without making repayments will reduce the equity left in your home.

This can affect the amount of inheritance passed on to family members.

For customers who wish to protect part of their home’s value, ring-fencing some equity is an option your advisor can help arrange.

Lifetime mortgages now offer stronger protections than in the past, with modern standards designed to give customers peace of mind.

Is a lifetime mortgage right for you?

Deciding whether to take out a lifetime mortgage depends on your circumstances and what you want to achieve.

There are many ways to access funds later in life, and a lifetime mortgage is only one option to consider.

A qualified later life mortgage advisor in Durham will explore all of the alternatives with you first.

Depending on your needs, a different solution, such as a personal loan, standard mortgage, retirement interest-only (RIO) mortgage, or term interest-only (TIO) mortgage, may be more suitable.

If a lifetime mortgage does prove to be the best fit, your advisor will guide you through every step of the process.

This includes helping you think carefully about future changes in your circumstances and any plans you have for leaving an inheritance.

Date Last Edited: June 13, 2025