Using a Lifetime Mortgage to Support Family Without Jeopardising Your Future
For homeowners in later life, the desire to help family—particularly during times of need—can be powerful.
However, when your wealth is tied up in your home and your income is limited, it may seem like your options are few.
In reality, a Lifetime Mortgage could offer a way to support your loved ones without disrupting your long-term financial security.
Let’s explore a real-life inspired case where this was the case.
The Situation
We recently advised on a case referred by a trusted IFA contact, where a woman in her late 70s owned a property in the worth over £2 million.
While she had a significant investment portfolio, she was living on a modest income from the State Pension, supplemented occasionally by drawing on capital.
She had three adult children. Two daughters were both going through divorces and needed financial help with housing. Her son, who still lived at home, had additional vulnerabilities that raised concerns about future inheritance planning.
She didn’t want to sell her home, nor did she want to touch her investments, which she viewed as her care buffer should her health decline.
However, she did want to help.
Exploring the Options
A Lifetime Mortgage offered a potential solution. The initial goal was to gift £100,000 to each daughter, with the possibility of further releases in future.
The advice focused on two things:
- Taking what you need now – A lump sum of £200,000 would enable her to support her daughters immediately.
- Preserving flexibility for the future – A drawdown facility could be set up to access additional funds later, possibly for care, home maintenance, or further family support.
However, it wasn’t quite that simple. Some lenders offered lower fixed rates on lump sums, but at the cost of not including a drawdown facility. Others charged a higher rate to keep the drawdown option available.
This raised important questions:
Is it worth paying a slightly higher rate to maintain access to future borrowing? Or should further borrowing be dealt with later via a formal “further advance”?
The client was guided through the pros and cons of each path, including the cost implications of future advice and property valuations.
Managing Cost and Flexibility
The client was also guided through important decisions about how best to structure the borrowing.
She had the option to take a lower-rate product without a drawdown facility or accept a slightly higher rate in return for flexibility. That flexibility would allow her to access more funds in the future without needing to apply for a new loan.
If she opted out of the drawdown facility, any future borrowing would need to be done via a further advance—which can be significantly more expensive. Further advances typically involve:
- A new advice process (with associated fees)
- A property revaluation (often with high costs on larger homes)
- Potential re-approval from the lender, which may not be guaranteed
The guidance made clear that while both routes are valid, choosing the right approach upfront could save money and stress later.
Beyond the Numbers: Family, Fairness and Inheritance
Financial planning in later life is about more than numbers. The client wanted to ensure her gifting today didn’t unfairly disadvantage her son in the future.
This is where estate planning came into play so a further specialist adviser in this field was also involved.
Through collaboration and holistic advice, the client was advised to consider amending her Will to reflect the early gifts made to her daughters—ensuring that when the time came, her estate would be divided fairly.
As her son had vulnerabilities, it was also recommended she explore a discretionary trust. This would allow funds from her estate to be managed by trustees who could make informed decisions about how and when to support him—offering a layer of protection without denying him access to support.
Outcome: Empowered to Help, Protected for the Future
The result? The client felt confident in her ability to gift £200,000 now, safe in the knowledge that:
- Her home remains hers for life
- The option to borrow more remains open
- Her Will and trust arrangements can reflect her family’s unique needs
- Her investment portfolio stays intact, providing a safety net for care or emergencies
This case shows how Lifetime Mortgages, when used properly and collaboration with sound advice from IFAs and Estate Planners, can unlock practical and compassionate solutions—without compromising long-term financial security.
Final Thoughts
Helping your family doesn’t have to mean sacrificing your future. If you’re asset-rich but income-light, and want to understand your options for tax-efficient gifting, care planning, or legacy protection, we’re here to help.
PLEASE NOTE – We only advise on mortgage and non-investment related insurance. Will Writing is not regulated by the Financial Conduct Authority. For investment, pension and/or estate planning advice, you need to speak with a suitably qualified and authorised professional.
Risk Warning:
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.
Regulatory Disclosure:
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 – June 2025.
