From first advice to final repayment · Updated 29 October 2026
This page is general information, not financial advice. Safe Haven Equity is an introducer service. Equity release is a major decision, and you should take advice from a qualified, FCA-regulated adviser before going ahead.
A lifetime mortgage is the most common type of equity release. Our other guides explain what equity release is and how the interest builds up. This one is different: it follows a plan through its whole life, so you can see what happens, and when, from the first conversation to the day the loan is repaid.
| Stage | What happens |
|---|---|
| 1. Advice | An FCA-regulated adviser looks at your circumstances and, if a lifetime mortgage suits you, gives you a personal illustration. |
| 2. Choose your plan | Lump sum or drawdown, whether to pay any interest, and any extras such as inheritance protection. |
| 3. Application and valuation | Your home is valued and the lender decides whether to make an offer. |
| 4. Legal work | Your own solicitor explains the plan and you sign to confirm you understand it. |
| 5. Completion | The money is released. Any fees and existing loans secured on your home are paid first. |
One major lender says the process usually takes around 6 to 8 weeks from receiving your application to releasing the money. The legal stage is the part most likely to take longer.
You need advice before you can take out equity release. Under the Equity Release Council’s standards you should receive a fair, simple and complete explanation of the plan, covering set-up costs, tax, what happens if you move, and how changes in your home’s value could affect you. If a lifetime mortgage is suitable, the adviser gives you a personal illustration setting out the benefits, costs and risks.
Advisers can work in different ways. Some can only recommend one lender’s plan, while others look across the market. It is worth asking which applies to the adviser you are speaking to.
Most of the big decisions are made here, because they decide how much the plan will cost over time.
Your adviser submits the application and the lender arranges an independent valuation of your home. You may have to pay for the valuation up front. The lender then decides whether to offer, how much, and on what conditions. A condition might be paying off an existing mortgage, or carrying out urgent repairs.
Everyone who takes out equity release must receive independent legal advice. Your solicitor explains the whole plan, including your rights and obligations, and you then sign a certificate to confirm that they have done so. You normally pay your own legal fees. Your adviser can usually arrange a solicitor for you, but you can choose your own.
This is a good point to ask questions you have not yet had answered, and to check that your family knows what you are planning.
On completion the lender pays the money to your solicitor. Fees and any loans secured on your home, such as an existing mortgage, are paid off first. Whatever is left goes to your bank account, or stays available to you if you chose drawdown.
You can repay the whole loan early, for example if you move or come into some money, but it can be expensive. Many plans charge an early repayment charge. This can be a set percentage that falls over time, or a charge linked to government bond yields, which could be large or nothing depending on how those have moved.
Some plans waive the charge in certain circumstances, such as moving into care or the death of a joint borrower. Ask for a redemption statement before you decide. Lenders say it is only valid for the day it is produced.
The loan normally has to be repaid when the last borrower dies or permanently moves into long-term care. In practice this usually means selling the home.
That last point is why it is worth telling your family about the plan. The more interest has built up, the less will be left. Our guide, Is Equity Release a Good Idea?, sets out the pros and cons.
A lifetime mortgage is a loan secured on your home. You keep ownership and can stay in the property. Most plans have no monthly payments, so interest is added to the loan, and the balance is usually repaid from the sale of the home when the last borrower dies or moves into long-term care.
A lump sum gives you all the money at the start, and interest builds up on all of it. With drawdown you take some money now and keep the rest available, and you only pay interest on what you have actually drawn.
Yes. Plans that meet Equity Release Council standards allow penalty-free partial repayments, subject to the lender's criteria, and many cap this at around 10% of the amount borrowed each year. Repaying the whole loan early can trigger an early repayment charge, so check your plan first.
Your executor is responsible for repaying the loan, usually by selling the home, and typically has around 12 months to do so. Interest keeps building until it is repaid. On plans that meet Equity Release Council standards, the no negative equity guarantee means your estate will never owe more than the home is worth after sales costs.
It varies. One major lender says it usually takes around 6 to 8 weeks from receiving the application to releasing the money, and the legal stage is the part most likely to take longer.
Make a no-obligation enquiry and we will introduce you to a qualified adviser who can explain the options for your circumstances.
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