It’s official: equity release is off to a flying start in 2025.
As an equity release mortgage broker in Maidenhead, we’re delighted to hear that this form of lending, which we’ll refer to as lifetime mortgages throughout this article, is going from strength to strength.
But what is a lifetime mortgage? And, more to the point, why is this type of mortgage booming in 2025?
Vital statistics
Figures from the Equity Release Council – the organisation that represents the equity release sector and seeks to promote and maintain high standards across the market – reveal that demand for lifetime mortgages is up by almost a third (32 per cent) in Q1 compared to the same time last year.
In fact, total lifetime mortgage lending reached a staggering £665m in the first few months of the year.
For those unfamiliar with lifetime mortgages, then quite simply it’s a way in which homeowners can access the equity built up in their property – without selling it.
Sound good? Our team of Maidenhead mortgage brokers think so, particularly if you’re a homeowner that needs access to money but would rather stay in your home.
But why exactly is it growing?
Strategic choice
Against the backdrop of a growing cost of living and the gulf between property prices and earnings continually growing (particularly for the younger generation, which are finding it increasingly difficult to enter the property market), lifetime mortgages have become a viable way in which to boost the coffers.
Traditionally, selling a property has been a last resort. However, thanks to a lending model that allows homeowners to access funds and stay put, homeowners can now boost their lifestyle, offset the growing cost of living, or, as many lifetime mortgage applicants do, use the freed-up equity to gift a deposit for a property to their children and grandchildren.
However, lifetime mortgages aren’t for everyone – both in terms of who can access them and with respect to the pros and cons of lifetime mortgages. So, let’s take a look at both aspects here.
Lifetime mortgage criteria
For a more comprehensive guide on the benefits of lifetime mortgages, then read our previous article here.
However, if you are considering applying for a lifetime mortgage, then there are four things you need to know. These are as follows:
- Lifetime mortgages are only available to those aged 55 years old and above
- The property for which you’re looking to release equity must be your primary residence
- The value of the property must be at least £70,000
- Applicants must have no (or a very low) mortgage. It’s also worth noting if you do have a low mortgage, any funds released will need to pay off the remaining balance as a priority
Pros and cons of lifetime mortgages
As with all mortgage products, there are always pros and cons. When it comes to lifetime mortgages, there are several considerations, all of which our team of Berkshire mortgage advisers will happily walk you through. However, here are our top six to think about:
| Pros of lifetime mortgages | Cons of lifetime mortgages |
| Access tax-free cash up to between 60 – 65 per cent of your property’s value | Whilst there are no monthly repayments there is compound interest to consider, which builds over the duration of the loan |
| Monthly repayment-FREE. Applicants repay the loan at the time of death (or when moving into care) | If you’re on state benefits, then a sudden influx of cash is likely to impact any that are means tested |
| Retain ownership of the property you’ve released equity on | The loan, and the associated interest, is payable on death. As it will be covered by your estate, it means that you will have less to pass on |
Is a lifetime mortgage right for me?
If that’s a question you’re still asking after reading this, then it’s something our team of mortgage brokers in Maidenhead can help with. Lifetime mortgages are more complex than standard mortgages, and need to be carefully considered. However, we can help you make an informed decision and access the best lifetime mortgage deals in the UK.
To discuss lifetime mortgages, contact our Maidenhead mortgage brokerage on 01628 560820 or email enquiries@altonmortgages.co.uk to arrange an initial mortgage consultation.