A lifetime mortgage is a form of equity release scheme for people over 65 years old, where a loan is secured against your property to provide with a monthly income to spend as you wish.

Usually interest is added to the lifetime mortgage loan , accruing at a fixed or variable rate. The loan plus interest is eventually paid back when you and your partner die. At that point the inheritors will inherit the home and the debt, and they will be able to liquidate it by selling the home, or by taking on a new mortgage, or with their money.

Since it is a loan, tax is not incurred on the monthly income