What occurs in a lifetime mortgage?

In a lifetime mortgage, the homeowner releases cash while retaining full ownership of the property. This type of mortgage is designed specifically for older homeowners, allowing them to access the equity in their home without needing to sell it. The cash released can be used for various purposes, such as funding retirement or making improvements to the property.

Throughout the lifetime of the loan, the homeowner continues to live in the property and is responsible for maintaining it. The mortgage is typically repaid when the homeowner either passes away or moves into long-term care. At that point, the property is sold to pay off the mortgage debt, but until such an event occurs, the homeowner enjoys full rights to live in and maintain their home. This arrangement differentiates lifetime mortgages from other forms of equity release, as it ensures the homeowner retains ownership and does not face the pressures of selling their property or vacating it prematurely.