A lifetime mortgage can allow you to release equity from your home, typically to help you fund retirement, whilst allowing you to retain and live in your home. The popularity of lifetime mortgages has grown substantially across the UK, but it’s essential you know all the facts before deciding whether you wish to proceed. Our Equity Release Scotland advisers only help Scottish people as we like to meet face to face where possible.

For this reason, our qualified and equity release regulated advisers take time to meet with you and discuss your options. We also like to meet with your family, where applicable, to ensure you and your family have the facts and can discuss all the options presented to you.

Some people choose to consider a lifetime mortgage because they want to help family members financially before they pass away, they want to enhance their quality of life during their retirement or they don’t have anyone to inherit their assets (house), so choose to spend the money early.

If you’re aged 55+ and have repaid most, if not all, of your mortgage then you could be applicable for a lifetime mortgage. We have over 20 professional mortgage advisers across the whole of Scotland and 4 are regulated and experienced in providing equity release solutions. Our equity release advisers are in Glasgow, Edinburgh, Aberdeen and Dundee.


What Is Equity Release Lifetime Mortgage?

An equity release mortgage, also known as a lifetime mortgage, enables you to release money from your home when you reach 55 years of age or older. You retain and live in your home for the remainder of your life and when you pass away or move into long term care, the balance is settled with the lender.

There are two equity release services we recommend – these are drawdown and lump sum. We do not recommend home reversion plans as this would mean the lender would own a share of your property.

For Scottish residents, we can explore whether an equity release solution would be applicable for you.

Lump Sum - Lifetime Mortgages

A lump sum lifetime mortgage offers you a fixed amount of tax-free money from a lender which does not have to be repaid until you enter long term care or pass away. There is no fixed date to repay the money and you are able to retain ownership of your home. Essentially, you can continue to live in your home and still release some of the money early. 

You can choose whether you apply a fixed or variable interest rate and the loan is secured against the property, similar to a traditional mortgage. The interest on the loan is compounded over the term and the balance is due on death / entering long term care.

Repayment Options

You have the option to repay the money you borrow monthly, with a voluntary repayment of 10% (maximum) of the initial amount borrowed per year or you can settle the finance when you no longer need the property. There are flexible and accommodating payment options to meet your circumstances. When you pass away or enter long term care, the property will be sold by the executor and any remaining funds will be returned to your estate and distributed according to your will. If your family/ beneficiaries wish to retain the property then they can repay the loan and retain the home.

Drawdown - Lifetime Mortgages

Drawdown lifetime mortgages are similar to lump sum arrangements, except you receive an initial payment, followed by the ability to access a further agreed amount of money at a later date. The initial payment and any subsequent drawdowns are charged at a fixed or variable rate. You can take the money in a set payment plan or on a sporadic basis (as and when you need it).Drawdown is often popular if you want to enhance your income over a longer period of time to enhance your standard of living. Lump sum lifetime mortgages are often a better option if you want to help family financially, such as onto the property ladder and need a large amount of money. However, this isn’t always the case and speaking to a qualified adviser can help you determine which option is right for you.

Repayment Options

There are flexible ways to repay a drawdown lifetime mortgage. Some people like to repay the interest each month so it’s just the capital to be repaid when you pass away or enter long term care. You can also pay up to 10% towards the balance with some lenders, or leave the repayment until the very end when interest and capital will need to be repaid. There is no fixed end date on the drawdown lifetime mortgage and payment is not due to be repaid until you no longer need your property (on death or entering long term care). If you or your partner pass away/ enter long term care the other spouse will be able to remain in the property and the balance will not be due until the last remaining property owner dies or enters long term care.

Equity Release Scotland

Enquire to speak to an equity release adviser from Mortgage Advice Scotland. Initial conversations are free and fees are only charged if you decide you wish to proceed.

We can assist anyone in Scotland with advice and help people from Glasgow to Edinburgh and Inverness to the Borders.

Mortgage Advice Scotland

Understanding Lifetime Mortgages

We believe it’s imperative you have all the facts when it comes to equity release / lifetime mortgages. At Mortgage Advice Scotland we regularly gives people the advice they need to make an informed decision and they’re then empowered to choose for themselves, what option they wish to proceed with.

Lifetime mortgages are suitable for many people, but they may not be your best option. You may wish to utilise your private pension to fund your retirement. Your pension may also allow you to drawdown a lump sum to help family members (known as pension freedoms act – where you can access up to 25% of your pension pot tax free). If you’re worried about your home being used to fund future care home costs, then you could consider placing your home into a Trust (a Trust can provide a range of different benefits).

We have advisers that can assist you with all these options as well as experts that specialise in lifetime mortgages. Our objective is to ensure you have every option and whatever you decide, we’ll be happy to assist you.


Lifetime Mortgage Query?

Do you have questions about lifetime mortgages and need specific answers? Please get in touch and we’ll be able to answer all your questions for you. Our advisers cover Inverness, Aberdeen, Dundee, Glasgow, Stirling, Edinburgh and the Borders of Scotland, so we would be happy to answer all your questions.