A reverse mortgage is sometimes known as a lifetime mortgage. A reverse mortgage is a loan available to older people (normally aged over 60). Reverse mortgages are used to release equity in the property that they own. Sometimes the equity is released in one lump sum; sometimes, the equity is released in multiple payments. The loan repayments are deferred until the house is sold; the owner dies; or the owner leaves the home (eg to go into care).

If a property increases even further in value after a reverse mortgage has been taken, it is possible to take out a further reverse mortgage on the property to release even further equity. There is no limit to the number of reverse mortgages that can be on a property, as long as the property continues to increase in price between each reverse mortgage application. However, this only applies in some countries - some countries such as the US state that a reverse mortgage must be the first and only mortgage on the property.

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