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Lifetime Mortgage Lump Sum

Designed to let you release a tax-free sum of money in the form of a loan from your property

Try our free Equity Release calculator

What does LV= offer for those looking for equity release products?

Though we do offer LV= lifetime mortgage products, we don’t just offer advice on our own products.

We offer impartial, FCA-regulated advice, looking at the whole of the market to find the best solution for your retirement. 

Why choose LV= for Lifetime Mortgage Lump Sum advice?

  1. We’re a member of the Equity Release Council as a provider. There are just 15 providers in the UK that have signed up to meet the Equity Release Council’s standards and we’re proud to be one of them. 
  2. Our advice is focused on giving you honest advice and finding you a suitable equity release plan from the whole of the market, not just from a few select providers.
  3. We’re a mutual, so every single decision we make is made in the best interest of our customers, whether that’s for life insurance or equity release. 

Advantages & Disadvantages of a Lifetime Mortgage Lump Sum

It's a big decision to make, so it's important you make the right choices when thinking about releasing money from your property.

Advantages of a lump sum lifetime mortgage

  • Products are available from the age of 55
  • The cash you release is tax-free 
  • You continue to own your home, thereby benefiting from any future increase in its value
  • There is no requirement to make monthly repayments although you can get some lifetime mortgages that allow you to make interest-only repayments
  • All Equity Release Council-approved products come with a ‘no-negative-equity guarantee’, meaning that your estate will never owe more than what your property is sold for when your lifetime mortgage ends
  • Some equity release products will offer an inheritance protection guarantee which can allow you to protect a percentage of your property value to provide a guaranteed inheritance

Potential disadvantages of a lump sum lifetime mortgage

  • The size of the lifetime mortgage will grow over time. This is because interest is added to the original loan amount and it continues to roll up as future interest is added on top of this in compound interest
  • If you want to increase the amount of equity released beyond the original amount agreed, you will normally have to apply for a further advance, which would not be guaranteed
  • The amount that you will leave as an inheritance will be reduced, or may be non-existent unless you have chosen a lifetime mortgage that offers an inheritance protection guarantee
  • If you wish to pay off the equity release product early, you may have to pay an early repayment charge. These differ from product to product
  • In some cases, the lump sum of money that you release could affect your entitlement to any means-tested benefits that you may receive now or in the future
  • Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property and may reduce the value of your estate and impact funding long-term care

Try our free equity release calculator

Our equity release calculator allows you to quickly find out how much tax-free cash you could unlock from your home.
Go to our equity release calculator

Financial Advice on equity release

Need help?

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FAQs on Lifetime Mortgage Lump Sums

We know you’ve probably got plenty of questions, but here’s some of the most popular ones we get.

What is a lifetime mortgage?

A lifetime mortgage allows you to tap into the equity you've built up in your home over the years and access that money as a loan. Unlike a traditional mortgage where you make monthly payments to pay off the loan over time, with a lifetime mortgage, you don't have to make any monthly payments.

It's a way for older homeowners to get access to cash tied up in their home's value without having a monthly mortgage payment during retirement. The upfront cash can provide income for expenses, home renovations, travel, or anything else.

What fees are involved when taking out a lifetime mortgage?

Just like when you get a traditional mortgage to buy your home, taking out a lifetime mortgage also involves paying some upfront fees. The specific fees can vary quite a bit but could include:

  • Advice fees
  • Solicitors fees
  • Arrangement fee
  • Valuation fees
  • Interest rates
  • Early repayment fees

Equity Release guides