The Pro's and Con's

The Pro's and Con's of Lifetime Mortgages


  • They can provide a guaranteed monthly income or a large lump sum.
  • You get to keep and stay in your own home for as long as you need it.
  • The loan is only repaid on death or the sale of your property.
  • There's the potential to benefit from any future increases in the value of your property.
  • Fixed rates prevent interest spiralling out of control.
  • Many schemes guarantee the total debt cannot exceed the value of your property.
  • When the house is eventually sold and the debt paid off, there might be money left over to provide some kind of inheritance.
  • The equity released on your main property is tax free.
  • Equity-release schemes can help to reduce your Inheritance Tax liability



  • They might affect your entitlement to benefits, or support from your local authority, as any money you raise through equity release is likely to affect the assessment of your income and capital.
  • The inheritance you pass on to your beneficiaries will be substantially reduced and won't include your home itself.
  • They can be inflexible if your circumstances change - you'll usually need the provider's permission for someone else, such as a relative, carer or new partner, to move in.
  • You might need to pay arrangement, valuation and legal fees.
  • If you sell up or die soon after taking out a plan, your estate could incur a loss.
  • You might not be able to transfer all of the debt if you move to a smaller property.
  • You will be required to have buildings insurance.
  • Lenders will expect you to keep your home in good condition, so you will need to set aside some money for repairs and maintenance.

Our Providers

Regulatory Statement

Decide to be Happy™ is a trading name of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority : FCA number 460421
Registered Office : 1st Floor, Princess Caroline House, 1 High Street, Southend on Sea, Essex, SS1 1JE.


A lifetime mortgage may affect the value of your estate and your entitlement to means-tested benefits.
Your adviser will talk you through this and the setting up costs before you make any decision to proceed.


Some of our advisers are NOT associates of the Equity Release Council.
Please confirm with your adviser their status with the council.

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