For many people exploring equity release, one of the biggest concerns is whether taking out a lifetime mortgage means giving up ownership of their home.

Let’s clear this up straight away — if you take out a lifetime mortgage, you still own your home.

This common misunderstanding often stops people from looking at what could be a useful financial option in retirement. So, here’s a straightforward guide to what a lifetime mortgage is, how it works, and why you remain in control of your property.

What Is a Lifetime Mortgage?

A lifetime mortgage is a type of loan secured against your home that lets you release some of the equity built up in the property — without having to move out. The loan is typically repaid when you pass away or move into long-term care.

Importantly, unlike a home reversion plan (where you sell all or part of your home to a provider), with a lifetime mortgage, you’re not selling your property. You remain the legal owner.

You:

• Stay on the title deeds
  
• Remain in full control of your property
  
• Can live in your home for the rest of your life
  

Your home is simply used as security for the loan — just like a traditional mortgage.

Why Do People Think They Lose Ownership?

There are two main reasons:

1. Confusion Between Different Types of Equity Release

Some people mix up lifetime mortgages with home reversion plans, which do involve selling part (or all) of your home. But they’re two very different products.

2. Misunderstanding How Mortgage Debt Works

Just because a loan is secured against your home doesn’t mean you no longer own it. This is no different from a regular mortgage — the lender has a financial interest, but you remain the owner.

Lifetime Mortgage Features That Protect Your Ownership

Here are some key features designed to give you peace of mind:

• No Negative Equity Guarantee

You (or your estate) will never owe more than the value of your home — so your loved ones won’t be left with additional debt.

• Optional Monthly Payments

You don’t have to make monthly repayments, but many plans allow voluntary payments, which can help reduce the total amount owed over time.

• You Can Move Home

Most lifetime mortgages are portable, meaning if you decide to downsize or relocate, you may be able to transfer the mortgage to a new property (subject to lender approval).

What Happens When the Loan Is Repaid?

The loan is usually repaid when you pass away or move into long-term care. At that point, your home is sold and the proceeds are used to repay the loan.

Any remaining equity belongs to your estate. If your family wants to keep the property, they can repay the loan using other funds.

Because you still legally own the home, your family stays in control of the sale process — not the lender.

Is a Lifetime Mortgage Right for You?

If you’re retired or approaching retirement and looking for a way to access extra funds while continuing to live in your home, a lifetime mortgage could be a useful option.

However, it’s vital to get the right advice. Lifetime mortgages can affect the value of your estate and your entitlement to means-tested benefits, so it’s important to explore all your options.

Want to Know More?

We’re here to help you understand how lifetime mortgages work, what the alternatives are, and whether it’s the right fit for your plans.

Feel free to get in touch for a no-obligation chat — we’ll explain everything in plain English and help you make an informed choice.

Information correct as of May 2025.