These type of mortgages differ from a conventional mortgage as a lifetime mortgage is designed for the rest of your life. The property remains 100% in your name during this period. you will be able to live there for the rest of your life or move into long term care.

Its great if you need extra money, but do not want to leave your property 

As the name suggests, an equity release lifetime mortgage works by being in place for the remainder of a homeowner’s life.

Interest typically compounds or ‘rolls up’ and, thus, increases over time. Any proceeds left after repaying the provider are then passed onto your estate and distributed to your beneficiaries.

There are now  plans that you can also pay some or all of the interest to stop interest accusing.

Payments from equity release lifetime mortgages are flexile, you can decide whether to take the cash as a lump sum or in several smaller chunks known as ‘drawdown.’ In both instances, the money released is tax-free and you are only ever charged interest on the amount you withdraw.