If you’re a homeowner aged 55 or over, a lifetime mortgage could offer a way to release some of the money tied up in your home, without needing to move or make monthly repayments.
These mortgages are designed to last for the rest of your life and are usually repaid when your home is sold.
Lifetime mortgages have become more popular in recent years, particularly among those looking to supplement their retirement income or help family members with larger expenses.
Understanding how they work can help you decide whether it’s the right fit for your plans.
What is a lifetime mortgage in Doncaster?
A lifetime mortgage is a type of loan available to homeowners aged 55 or over that allows you to release money from your home without selling it. It’s a form of equity release, meaning you’re borrowing against the value of your property, but you don’t need to make monthly repayments unless you choose to.
The amount you can release depends on your age and the value of your home. Interest is added to the loan over time, and the full amount is usually repaid when your home is sold after you pass away or move into long-term care.
How does a lifetime mortgage work?
With a lifetime mortgage in Doncaster, you borrow a lump sum or set up a flexible cash facility secured against your home. You remain the full legal owner of the property, and you can continue living there for as long as you like.
There are no required monthly repayments, although some products allow you to pay off interest if you want to reduce the overall cost. Interest is usually added to the loan each year, and the full balance is repaid from the proceeds when the property is eventually sold.
You can choose to release the money all at once or take smaller amounts over time, depending on your plans. This flexibility is one of the reasons why many people consider lifetime mortgages as part of their retirement planning.
Do I still own my home with a lifetime mortgage?
Yes, you remain the legal owner of your home when you take out a lifetime mortgage. Nothing changes in terms of ownership, and you can stay in the property for as long as you choose, provided it remains your main residence.
This is a key difference between lifetime mortgages and some other forms of equity release. Your name stays on the title deeds, and you keep full responsibility for maintaining the property throughout the term of the loan.
Many people choose this type of mortgage because it allows them to access some of the value in their home without giving up ownership or needing to move.
How is a lifetime mortgage repaid?
A lifetime mortgage is typically repaid when you pass away or move into long-term care. At that point, your home is usually sold, and the money from the sale is used to clear the balance of the loan, including any interest that’s built up over time.
You don’t need to make monthly payments unless you choose a product that allows voluntary interest payments. Some people prefer to pay off some or all of the interest as they go, which can reduce the total amount owed later on.
If there’s money left over after the loan is repaid, it goes to your estate. Many lifetime mortgages come with a “no negative equity guarantee”, which means your family won’t be left to repay more than the home is worth.
What can a lifetime mortgage be used for?
One of the main benefits of a lifetime mortgage in Doncaster is the freedom to use the money in a way that suits your plans. Some people use it to boost their retirement income, while others put it towards home improvements, clearing an existing mortgage, or helping family onto the property ladder.
There’s no restriction on how you use the funds, and you can release a single lump sum or access smaller amounts over time. The flexibility can make a big difference, especially if you’re looking to enjoy more financial freedom in later life.
As a mortgage broker in Doncaster, we often see homeowners using lifetime mortgages to improve their quality of life while staying in a home they love.
Is a lifetime mortgage right for everyone?
A lifetime mortgage in Doncaster can be a useful option for some, but it’s not the right fit for every homeowner. It depends on your age, your long-term plans, and whether you’re comfortable with the idea of reducing the equity in your home over time.
It’s important to think about how the loan will affect your estate and what impact it might have on any inheritance. Some products offer features like inheritance protection or the option to make voluntary payments, which can help you shape the mortgage around your priorities.
Before making any decisions, it helps to speak with a mortgage broker like us who understands how these mortgages work and what alternatives may suit your needs. Our team can explain how a lifetime mortgage might work for you and whether it fits with your plans moving forward.
Date Last Edited: October 31, 2025
