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10 reasons to consider a lifetime mortgage

A lifetime mortgage is a form of equity release designed to give over-55s more financial freedom in retirement, but how do you know if it’s right for you? Here are 10 good reasons why a lifetime mortgage could be worth thinking about.

mature man cycling with his feet off the pedals

1. Stay in your home

With a lifetime mortgage plan, your home is still 100% yours. You’re just borrowing against it. You could even move and take your plan with you, if the new house meets criteria set by your lifetime mortgage provider and you pay the associated costs.

2. Pay off your mortgage

If you still have a mortgage or any other debt secured on your home, the money you unlock will go to clear these first. If you choose to make no monthly repayments, this could make a huge difference to your monthly outgoings, freeing up cash for a more comfortable retirement.

3. Support your family and loved ones

Help your family with a lifetime mortgage. You could either use equity release to reduce the inheritance tax paid on your estate, or use the equity to support your family, children or grandchildren now – rather than waiting to leave an inheritance. Inheritance tax is complex so you should seek professional advice if this is of interest to you.

4. Unlock a tax-free cash sum

Just think of the difference extra cash could make to your daily life. From everyday travel and paying bills to the weekly shop and other living expenses, a lifetime mortgage could help you to enjoy and maintain the lifestyle you’re used to.

5. Pay nothing back during your lifetime

Your lifetime mortgage loan plus any interest is only paid off after you die or move into care, so there are no monthly repayments to worry about. (But you can choose to make repayments if you want to – it’s up to you.)

6. Make life-changing purchases

A lifetime mortgage doesn’t have to be about spending big, but it could be – it’s your money to spend how you like. How about that jet-setting holiday you’ve always dreamed of? Or perhaps you could upgrade your car to travel in style and comfort.

mature lady relaxing on a cruise ship

7. Improve your home or garden

Many taking a lifetime mortgage spend their unlocked cash on home or garden improvements or adaptations, and it’s easy to see why. As well as making your home a nicer place to live, adaptations can also help with mobility – getting your home ready for the future. Depending on your home and the improvements you make, you could even add to its value – which your family will benefit from when you pass away.

mature couple chatting in the kitchen

8. Financial control

Lifetime mortgage rates of interest are fixed for life, so you always know what you’re being charged. And, however much cash you unlock, you’ll never owe more than the value of your home – helping you stay in control of your debt.

9. No need to downsize

A lifetime mortgage lets you free up some of your home’s value without having to sell up and move somewhere cheaper and smaller, meaning you get to enjoy retirement in your family home and avoid the stress and upheaval of moving.

10. It’s fully regulated

Equity release lifetime mortgage plans are fully regulated and supervised by the Financial Conduct Authority (FCA) – providing protection and peace of mind to lifetime mortgage customers since 2004.

What could you do with a lifetime mortgage?

Now you know what’s possible with a lifetime mortgage, see how much equity you could release with our online Equity Release Calculator.

Remember, unlocking cash from your home will reduce the value of your estate and could affect your entitlement to state benefits – such as pension credit, savings credit or even council tax benefit – so think carefully before considering taking out a lifetime mortgage. And remember, while you can choose not to make repayments in your lifetime, interest will build up on your loan over the years. Read more about how much equity release costs.

Get in touch today

Thinking an equity release lifetime mortgage could be right for you? As it’s such a big decision, it’s important to seek advice and understand how it works. Give us a call today and we can check if you’re eligible and put you in touch with an independent expert advisor for advice.

Whenever you’re ready, we’re here for you

For more information and to check your eligibility, call The SunLife Over 55 Equity Release Service today on 0800 633 5566 or request a call back.

Here's the information that you need to know about who we are and the other companies that we work with in order to provide our products and services.

Who are SunLife?

Phoenix Life Limited trades as SunLife and is the provider of the Guaranteed Over 50 Plan, SunLife Insurance and the life insurance policy payment option for Funeral Plans. Phoenix Life Limited’s registered office is at 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 1016269). 

SunLife Limited distributes financial products and services and is a company limited by shares, registered office: 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 05460862). SunLife Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (registration no. 769427).

You can contact us by post at SunLife, PO Box 1395, Peterborough, PE2 2TR or by phone on 0800 008 6060.

If you choose to add Funeral Benefit Option to your Guaranteed Over 50 Plan, Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

Who provides the Funeral Plans?

Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

The life insurance policy that pays for your funeral will be provided by Phoenix Life Limited, trading as SunLife.

Who provides My Smarter (ISA)?

My Smarter (ISA) is provided by Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority. Details can be found on the Financial Services register, registration No. 188832. Member of The Investment Association. Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.

Who provides the Will writing services?

Hugh James is authorised and regulated by the Solicitors Regulation Authority (SRA Number:303202).

The information contained on this website is based on Hugh James' understanding of the law of intestacy in England and Wales only as at April 2014. The law in Scotland and Northern Ireland is significantly different. This is for information purposes and is not intended to be legal advice.

Who provides Family Life Insurance?

SunLife Family Life Insurance is provided by Scottish Friendly Assurance Society Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Details can be found on the Financial Services register (registration number 110002). Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ. 

Who provides SunLife Pet Insurance

SunLife Pet Insurance is arranged and administered by BDML Connect Limited. BDML Connect Limited is authorised and regulated by the Financial Conduct Authority (No. 309140). Registered in England and Wales Number 02785540. Registered Office: 45 Westerham Road, Bessels Green, Sevenoaks, Kent, TN13 2QB.

Who provides SunLife Home Insurance

SunLife Home Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.

Who provides SunLife Car Insurance

SunLife Car Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.