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A Lifetime Mortgage does not need to be repaid until you have either died or entered permanent long-term care. The full amount, plus interest, will then usually be cleared with the sale of the home.

Equity release plans have changed, and now come complete with a number customer-focused safeguards introduced by the Equity Release Council. The Council is a voluntary body committed to increasing transparency and protecting consumers. For example, the Equity Release Council uphold a no-negative-equity guarantee to ensure you won't pass on Lifetime Mortgage debt to your loved ones. Should your Lifetime Mortgage ever exceed the value of your home, for example, in the event that the value of your home saw a huge decrease, this guarantee means that the amount owed is capped at the value of your home when sold at market price.

To protect you and your family against any changes in the housing market your Lifetime Mortgage will be covered by a no-negative-equity guarantee. The no-negative-equity guarantee is one of the safeguards provided by the Equity Release Council. Should your Lifetime Mortgage ever exceed the value of your home, the guarantee ensures that any excess is absorbed by the lender. This means you will not pass on Lifetime Mortgage debt to your loved ones.

A Lifetime Mortgage will allow you to release some of the equity tied up in your home by borrowing money secured against its value. You retain complete ownership of your home and interest will build up over time. With a home reversion plan you will sell a portion of your home to a provider. The sum will usually be far below the market rate as you are being permitted to remain there rent-free. You will also no longer own the entirety of your home. Responsible Life only advise on Lifetime Mortgages as you will retain 100% ownership of your home and we believe that they represent better value and offer better protections for our customers.

When you release equity, you are accessing a portion of the funds that you have built up in your home. As a result of this, the value of your home, when it is sold, may be lessened due to already accessing a portion of its value, in addition to the interest accrued over the duration of your Lifetime Mortgage. Releasing equity with a Lifetime Mortgage could have an impact on any means-tested benefits that you are currently in receipt of, or might look to receive in the future. Given that the amount is released as tax-free cash, this is no longer held within your home and as such might count towards savings or disposable income for the purposes of determining eligibility for means-tested benefits. An adviser can assist you in mitigating the possible impact releasing equity might have with regard to means-tested benefits, however it is important to be aware of this fact even before you enquire with us so that you can consider your personal circumstances and make sure your adviser is fully informed.