There are quite a few variations on lifetime mortgages available for you to consider. These include lump-sum lifetime mortgages, interest-serviced lifetime mortgages and drawdown lifetime mortgages.
The lump sum option is, as its name implies, where you arrange to borrow a set amount and receive a lump sum in return, immediately. The interest rolls up year on year, you do not pay any interest.
The interest-serviced lifetime mortgage is the same, but in this instance you have the option to make interest payments, which results in slowing the rate of the roll up of accrued interest, and keeps the mortgage from escalating too quickly in size.
The drawdown lifetime mortgage is where you agree a facility, but instead of taking all the amount immediately, you take the amount in stages, as you require the funds. You will only be charged interest once you have made a drawdown. This could help limit the interest costs over time.