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We bring you access to some of the best equity release products and deals from the UK's leading providers.
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What is a lump sum lifetime mortgage?

This ‘standard’ form of lifetime mortgage for over 55s is where you unlock some of your home’s value as a single lump payment. The cash you receive is tax-free and yours to spend how you wish, once any existing mortgage is cleared.

As with most other equity release plans, you won’t need to make any monthly repayments. You’ll retain full ownership of your property and retain the right to live there as long as you wish. It means you or your loved ones can still benefit from any increases in property values in the years ahead.

The loan typically comes to an end when you pass away or move into long-term care. At this point, your home is sold so the loan plus interest can be repaid. Anything left over is returned to you or your beneficiaries.

Why choose a lump sum lifetime mortgage?

Millions of people aged 55+ own their own home, yet many do not have ready access to the cash they need. They also prefer not to take out a loan that requires regular repayments. Being ‘asset rich, cash poor’ can put a block on doing some of the things you’d really like to.

That’s where a lifetime mortgage comes in. It’s a type of secured loan – but one where you don’t have to make any monthly payments. That could be ideal if you are on a low or fixed income, or if you simply don’t want to add monthly repayments to your outgoings.

With a lump sum lifetime mortgage, you take all the money you release in one go. Once any outstanding mortgage on your property is repaid, the remaining cash is yours to spend how you choose. It could be what you are looking for if you need a large sum now, such as carrying out urgent repairs to your home.

A lump sum lifetime mortgage might be suitable if you need:

  • A tax-free cash payment.

  • Freedom from having to make monthly repayments.

  • The right to make repayments on the loan (although early repayment charges may apply).

  • Full ownership of your home and the right to live there for as long as you wish.

  • Freedom to move home, if the new property meets the lifetime mortgage provider’s criteria.

Five star reviews from happy customers

Taking out equity release is a big decision, so it’s good news that our selected advisers enjoy great feedback and an ‘excellent’ Trustpilot rating from customers who have used the service.

Highly recommended

Explained everything from the first phone call we made to completion, giving us time to understand all the options. Everything went smoothly - would highly recommend.

Brilliant service

The service we have received so far has been brilliant. The documentation came through very quickly, but we have not been put under any pressure to make a decision.

Help was always on hand

Everything explained to me every step of the way and always time to ask questions which are always fully answered. I never felt pressured to make a decision but help was always on hand.

What options do I have with a lump sum lifetime mortgage?

The lifetime mortgage market is very competitive, which is good news for homeowners as it means providers are increasingly offering innovative features to tempt customers.

Most providers let you make voluntary interest payments to reduce the amount of interest that builds up with an interest-only lifetime mortgage. You can stop these payments at any time, and interest will then accrue on the loan as with a standard plan.

Likewise, lenders typically allow you to make repayments of up to 10% of the original loan amount each year without an overpayment charge. But the good news is that some lenders are now waiving charges altogether in certain circumstances. At least one lifetime mortgage product now allows a total repayment of the loan with no charges.

How much can I release with a lump sum lifetime mortgage?

How much you can release depends on a number of factors:

Property value

There will be a maximum release based on a percentage of your home’s value.

Your property

The property’s tenure (freehold or leasehold), location and type of construction.

Your age

The older you are, the more you will be able to borrow with a lifetime mortgage. Someone aged 55 will typically be able to release around 20% of their property’s value, rising to over 50% for the oldest applicants.

Your health or lifestyle

An enhanced lifetime mortgage may let you release more if you are living with certain health conditions or make certain lifestyle choices such as smoking.

Things to consider

As with most decisions about financial matters, you do need to weigh up the pros and cons of a lump sum lifetime mortgage. Although access to a large cash lump sum may be attractive, there are potential disadvantages to consider:

  • It reduces the size of inheritance you can leave. The loan plus interest is repaid from the sale of your home when you pass away or move into long-term care, so there’s less equity to pass on.

  • The amount owed will grow quickly. Lifetime mortgages work on a compound interest basis, where interest is applied to the loan amount plus any interest already accrued.

  • When you release money, it might affect your eligibility for homecare funding and other means-tested benefits.

  • Early repayment fees will typically apply should you wish to repay the loan plus interest early. However, lenders may waive these fees in some circumstances.

  • If you gift some of the money you release to family or friends, they may be liable to pay inheritance tax when you pass away.

How to get your lump sum lifetime mortgage quotes

At Compare More we work with specialist partners who bring you quotes from the UK’s leading lifetime mortgage providers. To show quotes that match your circumstances and needs, we’ll need to know:

Your property type and value

The type and value of your property will impact how much you can release: the higher the value, the more you can release. We also ask whether you have an outstanding mortgage, as you will need to use the money you release to clear your existing mortgage.

The reason you are considering equity release

This can help tailor the service to your circumstances – but if you’d rather not say at this stage, just select ‘other’.

Your personal details

You’ll need to share details like your age and postcode as these will also affect how much you can release. We also need some contact details so we can get in touch with information about your quotes. 

Equity release guides

Answering your questions about lump sum lifetime mortgages

Equity release tools and calculators

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Equity release calculator

Get an instant view of how much tax-free cash you could access through equity release.
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Equity release compound interest calculator

A quick way to work out how much interest builds up on a lifetime mortgage

What type of equity release plan is right for you?

Explore your equity release options to find a plan that’s best for you.

Other ways to borrow

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Secured Loans

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Remortgages

Switch your mortgage deal or lender, often to get a better rate or release equity.
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Bridging Loans

Short-term funding to meet a temporary financial need.