Two of the most well-known options for accessing the value in your home are lifetime mortgages and home reversion plans.
If you are thinking about releasing funds later in life, it is important to understand how these choices differ. As a mortgage broker in Halifax, we help many homeowners explore which route might suit their needs.
What is a lifetime mortgage in Halifax?
A lifetime mortgage allows you to release tax-free funds from your home while keeping ownership of the property. You take out a loan secured against your home, which is typically repaid when you move into long-term care or after you pass away.
You do not need to make monthly repayments unless you choose to. Many products allow you to roll up the interest, meaning the full amount is paid back from the sale of your home in the future.
Age 50+ mortgages in Halifax, like these, provide flexibility, as you remain the legal owner of your home. Lifetime mortgages are regulated and must meet specific standards, offering protections such as the no negative equity guarantee.
What is a home reversion plan in Halifax?
A home reversion plan works differently. You sell all or part of your home to a reversion provider in exchange for a lump sum or regular payments. In return, you retain the right to live in the property rent-free for the rest of your life, under a lifetime lease.
The amount you receive is typically below market value, as the provider takes on the risk of waiting to recover their investment when the property is eventually sold. You no longer fully own the home, which is a key point to consider.
Home reversion plans are also regulated and can provide a guaranteed place to live, though the loss of full ownership is a significant difference compared to a lifetime mortgage.
How does a lifetime mortgage compare to home reversion?
The main distinction is ownership. With a lifetime mortgage in Halifax, you remain the homeowner and can benefit from any future rise in property value. Interest builds on the loan, which is repaid later.
With a home reversion plan, you sell some or all of your home upfront, so you no longer fully own the property. You do not pay interest, but the amount you receive is less than the full market value of your home.
Flexibility is another key factor. Lifetime mortgages often provide more options in terms of how and when you access funds, and whether you want to make any repayments. Home reversion plans are more rigid, with terms fixed once the agreement is made.
Is a lifetime mortgage right for everyone?
Not every homeowner will benefit equally from a lifetime mortgage or a home reversion plan. The best choice depends on your personal circumstances, preferences, and plans.
If keeping full ownership of your home matters to you, a lifetime mortgage may be more appealing. If securing a guaranteed place to live and accessing a lump sum without interest suits your situation, a home reversion plan could be considered.
As a mortgage broker in Halifax, our mortgage advisors are here to talk through your options and explain the differences clearly. Whether you are looking at age 50+ mortgages or exploring ways to release equity, we can help you find the most suitable path.
Date Last Edited: June 9, 2025
