With a Lifetime Mortgage, often referred to as a “Roll-up Mortgage”, you receive funds for which there is interest payable, however this interest is added to the sum released, so that you don’t have to pay it on a monthly basis.
The amount of debt builds up over time as the interest is added to the initial sum, and the final sum, including interest, is cleared when you decide to sell the property or die.
The funds can be taken as a lump sum or regular income, and can even be set up with a "credit facility" such that you agree a % of the property value to be available to be drawn down at any time - whenever you need it!
All the schemes recommended subscribe to the Safe Home Income Plan (SHIP) code of practice which provides a range of minimum essential features such as: to provide you with fair, simple and complete presentations of your plans, the right to remain in your property until you die, a no negative equity guarantee etc.