More people over the age of 55 are turning to lifetime mortgages in a bid to ease rising costs and interest rates, Bower Home Finance claims.

A lifetime mortgage allows enables homeowners aged 55 and above to access tax-free cash by release equity from their property, providing them with an additional source of income.

Bower Home Finance chief executive officer Geoff Charles says: “As mortgage rates continue to rise, we are seeing a notable increase in individuals turning to lifetime mortgages as an option to repay their mortgage with no or optional monthly payments.

“With affordability becoming a significant concern, lifetime mortgages offer a lifeline for homeowners seeking financial stability while preserving their independence and quality of life.

“By unlocking the equity in their properties, individuals can access tax-free funds to support their living expenses and enjoy the lifestyle they deserve.”

He adds that Lifetime Mortgages can play ‘a crucial role in enabling homeowners to age in the home they love.’

Bower Home Finance chief commercial officer Andrea Rozario says many homeowners are turning to lifetime mortgages as a ‘viable solution’ to rising rates.

She says the benefits of a lifetime mortgage are ‘compelling’ but encouraged people to contact the Equity Release Council for guidance and to discuss any concerns.

She adds they can cause the value of your estate to decrease, impacting the inheritance left behind, while eligibility for certain state benefits may also be affected.