What is a lifetime mortgage?

There are two basic types of equity release to choose from. One is a lifetime mortgage, which is a loan secured against your home; the other is a home reversion plan, which involves selling part or all of your home. 

With a lifetime mortgage you can take out all the money available to you in one go, or release smaller amounts as and when you need them. Some customers may be able to release a higher value of equity with an ‘enhanced’ lifetime mortgage – this is dependent on lifestyle and medical factors, such as your blood pressure and whether you smoke. 

Things to think about


  • Tax-free lump sum
  • No need to make monthly repayments
  • You continue to own your home and will benefit from any increases in its value
  • You can live in your home for the rest of your life, or until you leave it to move into permanent long-term care
  • With a lifetime mortgage, you’ll never have to repay more than the value of your property when it comes to being sold following death, or a move into permanent long-term care.

Things to consider

  • It will reduce the value of your estate
  • If you don't make interest repayments, the amount you owe will continue to grow as interest accumulates and is added to the loan
  • If the value of your home falls, your remaining equity will also reduce
  • Your entitlement to state benefits may be affected

Am I eligible for equity release?

You must own a property in the UK
You must be living in that property
The youngest homeowner must be at least 55 years old
The property must be worth £70,000 or more

Why consider equity release from Saga?

Deciding on whether equity release is right for you is understandably a big decision. You’ll want to be sure that you’ve considered all the facts and looked into your options with someone you can trust to act in your best interests. That’s why we’ve partnered with HUB Financial Solutions Limited to bring you the Saga Equity Release Advice Service.

The Service offers a free no-obligation consultation, however, if you choose to proceed with a recommended product, an advice fee of £750 is payable on completion. It’s worth remembering that if you are a Saga Possibilities member you’ll benefit from not having to pay an advice fee upon completion.

HUB Financial Solutions Limited provide an unbiased advice service, which means your adviser will spend time understanding your financial circumstances in detail, so that they can recommend the most appropriate product for you.They pride themselves on the quality of their service and take pleasure in seeing how equity release transforms people’s lives.

Your adviser will only recommend equity release products that meet the standards 

of the Equity Release Council, who oversee the industry and its members,

 and ensure that their strict standards and principles are upheld.

Exclusive to Saga

We’ve developed two equity release solutions, provided by Just, exclusively for Saga Equity Release Advice Service customers. The Saga Equity Release Plan has been recently improved to offer more flexibility and features. The Saga Regular Drawdown Lifetime Mortgage is a type of lifetime mortgage that provides a monthly cash sum to supplement your income in retirement, so you can keep doing the things that matter to you most. 

And you’ll get £425 towards your legal fees and no set-up costs or valuation fees to pay, if you choose to take out one of the exclusive products through the service.

1. Saga Equity Release Plan

This product is a lifetime mortgage, the more common form of equity release. To be eligible for this type of equity release you must be 55 or over with a UK property worth at least £70,000. If you have chosen to pay all or some of the monthly interest, the maximum age at application is 80 years old.

The recent improvements to this product include:

Minimum age reduced to 55 from 60
Option to reduce overall loan cost with monthly interest payments
Interest rate reductions for customers who choose to pay some or all of the monthly interest from the roll-up rate
Drawdown option open to all customers if funds are available
If you are borrowing jointly, you can fully repay the mortgage within three years of one of you dying or moving into permanent long-term care without early repayment charges applying.

It is important to note that the loan is secured against your home. 

Want to know more?

2. Saga Regular Drawdown Lifetime Mortgage

This type of equity release is available to people aged 60-80 with a UK home worth at least £150,000.

The Saga Regular Drawdown Lifetime Mortgage combines an initial tax-free lump sum payment with ongoing tax-free monthly payments, making it a possible option if you're looking to supplement your income in retirement.

Because interest is only charged on money as it's released, it accrues at a slower rate than a standard lifetime mortgage so there is likely to be less to repay in the future.

It is important to note that the loan is secured against your home. 

Want to know more?

Whenever you’re ready, we’re here for you.

See how much tax-free cash you could unlock with our free calculator.

or alternatively if you have a question or would like to speak to someone call: 0800 096 7120

Monday – Friday, 9am - 5pm (Calls are monitored for training and regulatory purposes)

Use our calculator 

Information about our provider

The Saga Equity Release Advice Service is provided by HUB Financial Solutions Limited who will pay us an introductory fee if you decide to take out a product. The Saga Regular Drawdown Lifetime Mortgage and the Saga Equity Release Plan are provided by Just. Just is a trading name of Just Retirement Money Limited. Saga Personal Finance is a registered trading name of Saga Personal Finance Limited, which is registered in England and Wales (Company No. 3023493). Registered office: Enbrook Park, Sandgate, Folkestone, Kent CT20 3SE. Saga Personal Finance Limited is authorised and regulated by the Financial Conduct Authority. HUB Financial Solutions Limited and Just Retirement Money Limited, both part of Just Group plc, are authorised and regulated by the Financial Conduct Authority.