Lifetime Mortgages
At PFM Associates, we offer trusted Lifetime Mortgage advice to help clients over 55 unlock the equity in their home. Whether you’re looking to fund home improvements, support family members, or boost your retirement income, we’ll guide you through the process with tailored recommendations that align with your long-term financial goals.
Many people over the age of 55 find themselves in a situation where their cash wealth is lower than the value of their assets. For most people, the largest asset is their home, but its value is often locked away until it’s sold. Lifetime Mortgages are a helpful workaround where people aged 55 and over can release some of the equity currently tied up in the property.
However, it’s a big financial decision to make and a complex area that requires expert financial advice. At PFM Associates, we provide lifetime mortgage advice to help our clients understand how much equity they can release while remaining in their home.
Whether you want to release money to perform some home improvements, take an extended holiday, or supplement some of your retirement income, we can offer Lifetime Mortgage advice and recommendations to give you the best possible outcome. That may come in the form of regular payments or a lump sum. We will consult with you about how to release equity on your property while preserving as much of the inheritance you leave behind and keeping your long-term financial planning goals intact.
Lifetime Mortgages
The most common way to release equity from your property is through a Lifetime Mortgage where you borrow against your property while retaining ownership. Interest compounds over time, and the loan is typically repaid when you die or move into long-term care.
Who Might Consider a Lifetime Mortgage?
Lifetime Mortgages are not suitable for everyone, but it may be worth considering if you:
- Need additional income to maintain your lifestyle in retirement
- Want to help family members financially, perhaps with house deposits
- Wish to make home improvements
- Need to fund long-term care costs
- Want to pay off existing debts or mortgages
- Desire to enjoy your wealth now rather than preserving it entirely for inheritance
What our clients say
Lifetime Mortgage Considerations
As with any loan, mortgage or financial plan involving property, there are considerable risks involved.
- The future of house prices remains unpredictable, so this increases equity release risk.
- Lifetime Mortgages can reduce the value of your estate, particularly if you live for many years after initiating it.
- Releasing equity could affect your entitlement to means-tested benefits.
- Many Lifetime Mortgage plans have substantial early repayment charges.
- Lifetime mortgages typically have higher interest rates than conventional mortgages, which can compound over time.
Possible Alternatives to Lifetime Mortgages
Before considering an equity release plan, it’s worth exploring alternatives such as:
- Downsizing
- Remortgaging
- State benefits
- Family support
Professional, Reliable Lifetime Mortgage Advice
Lifetime Mortgages are a complex area with significant long-term consequences. The Equity Release Council requires all clients to receive advice from a qualified adviser, and we strongly recommend using an independent adviser who can access the whole market.
PFM Associates takes the time to thoroughly understand your motivations and objectives, analyse your complete financial position, explore all possible routes and alternatives, and, if appropriate, find the most suitable and cost-efficient lifetime Mortgage plan. We will make sure you’re fully informed and aware of all implications before proceeding. We strongly encourage involving family members in discussions about releasing equity. While the decision is ultimately yours, releasing equity can profoundly affect your family’s inheritance, and their understanding and support can be valuable.
Speak with our qualified Lifetime Mortgage advisers in Poole, Dorset, today for a comprehensive review of your options.
Why work with us?
There are many reasons why over 2,000 people in Dorset, Hampshire and the South have chosen us to help them on their financial journey.
Using equity in your home will affect the amount you are able to leave as an inheritance. Any means tested state benefits (both current and future) may be affected by any equity released. This is a lifetime mortgage.
To understand the features and risks, ask for a personalised illustration.
FAQs - Lifetime Mortgages
A lifetime mortgage is a type of equity release product that allows homeowners aged 55+ to borrow against their property while retaining ownership. The loan, plus rolled-up interest, is typically repaid when the property is sold, usually when you move into long-term care or after death. No monthly payments are required.
The amount you can borrow depends on your age, property value, health, and the lender’s criteria. Generally, you can borrow between 20% to 60% of your property’s value. Older applicants and those with certain health conditions may be able to access higher amounts through enhanced lifetime mortgages.
Key risks include compound interest reducing the inheritance left to beneficiaries, potential impact on means-tested benefits, early repayment charges if you want to move, and the loan potentially growing to exceed the property value (though modern plans include no negative equity guarantees).
Many modern lifetime mortgages allow voluntary payments without penalty, enabling you to control interest roll-up. Some products allow you to pay interest monthly to prevent the debt from growing, while others permit ad-hoc capital repayments to reduce the outstanding balance.
Repayment typically occurs when the last borrower dies or moves permanently into long-term care. Some circumstances may trigger early repayment, such as not maintaining the property adequately, letting it out without permission, or not using it as your main residence for extended periods.
Using equity in your home will affect the amount you are able to leave as an inheritance. Any means tested state benefits (both current and future) may be affected by any equity released. This is a lifetime mortgage – to understand the features and risks, ask for a personalised illustration.
Please note, the information provided on this page is for informational purposes only and does not constitute advice.
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