Lifetime Mortgage Myth : There Won’t Be Anything to Leave Loved Ones

When people think about lifetime mortgages, one of the biggest fears we hear is:

“If I take one out, I’ll have nothing left to pass on to my family.”

It’s an understandable concern. But it’s also one that’s based on outdated assumptions.

Let’s take a closer look at how this actually works.

Yes, a Lifetime Mortgage Will Reduce Your Estate—But That’s Not the Whole Story

A lifetime mortgage is a loan secured against your home. Interest is added over time and the loan is typically repaid from the sale of your property when you pass away or move into long-term care.

So yes—it’s likely that your estate will be smaller than if you’d never taken out a loan.

But that doesn’t automatically mean nothing will be left behind.

In fact, there are several ways to protect an inheritance.

Three Ways You Can Still Leave Something Behind

1. Protected Equity Features

Some lifetime mortgage providers offer the option to “ring-fence” a percentage of your home’s value. This means that no matter how much interest accrues, a portion of your property’s value is guaranteed to be left for your beneficiaries.

It’s a great option for those who want to release some equity but are committed to passing something on.

2. Voluntary Payments

Modern lifetime mortgages are more flexible than you might think.

Many lenders allow voluntary payments—either regularly or on an ad hoc basis. Even paying just some of the interest can slow down how quickly the loan grows, helping preserve more equity in the home.

This can be particularly powerful if your income varies or you simply want to remain in control of the loan balance.

3. Property Growth Can Help

Over time, house prices may rise. This can offset some (or even all) of the interest that accumulates, depending on how long the loan runs and what’s happening in the market.

We’ve seen plenty of cases where, despite a lifetime mortgage being in place for years, there was still significant equity remaining when the property was eventually sold.

Real Life: It’s Rarely All or Nothing

It’s worth remembering that inheritance isn’t an either/or situation. You don’t have to choose between accessing equity now or leaving something behind.

With the right advice, many people are able to do both—support their retirement needs and still protect a legacy.

So, What’s the Truth?

This myth comes from a well-meaning place: wanting to look after your loved ones.

But the idea that a lifetime mortgage guarantees nothing will be left is simply not true.

• You can protect a portion of equity
• You can make payments to reduce the balance
• And your home might still grow in value over time

Most importantly—you remain in control. With good advice, you can explore all the options and make an informed decision that balances your needs today with your hopes for the future.

Final Thoughts

Whether you’re thinking about releasing equity to boost your retirement income, help family now, or repay an existing mortgage—there are always trade-offs to consider.

But don’t let the fear of ‘losing everything’ stop you from exploring what’s possible. A lifetime mortgage might not be right for everyone—but neither is leaving all your wealth locked in bricks and mortar.

If legacy matters to you, speak to a specialist. There may be more options than you realise.

This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

Symmonds de Lacey is a trading name of Easy Street Financial Services Limited which is authorised and regulated by the Financial Conduct Authority. Easy Street Financial Services Limited is a company registered in England and Wales with company number 6430453. The registered office address is Basepoint, 377-399 London Road, Camberley, Surrey, GU15 3HL.

Information correct at time of writing – May 2025.