Best Equity Release Mortgage Rates | moneyfacts.co.uk

Equity release mortgage rates

  - Equity release schemes can be used to unlock some of the money - or equity - you have in your home. The money you unlock is tax-free and can be spent on almost anything. If you are 55 or over and own your own home, you could use equity release to help bolster your retirement income.

Compare Lifetime Mortgages

Provider APR Fixed/VariableMin ageMin property valueMin loanMax loan 
Legal & General Home Finance
Flexible Lifetime Mortgage
Flexible Lifetime Mortgage
4.0%
Fixed
55£100k£10k£4m Speak to an Advisor
Product Fee: No Fee 
Aviva
Lifetime Flexible Option
Lifetime Flexible Option
4.0%*
Fixed
55£75k£15k£600k Speak to an Advisor
Product Fee: Arrangement £5
LV=
Lifetime Mortgage – Lump Sum+
Lifetime Mortgage – Lump Sum+
4.3%
Fixed
60£70k£10k£500k Speak to an Advisor
Product Fee: £595 
Hodge Lifetime
Lump Sum Lifetime Mortgage
Lump Sum Lifetime Mortgage
4.3%
Fixed
60£100k£20k£500k Speak to an Advisor
Product Fee: Application £595
More 2 Life
Capital Choice
Capital Choice
4.9%
Fixed
55£70k£15k£1m Speak to an Advisor
Product Fee: No Fee 
Just
Drawdown Lifetime Mortgage
Drawdown Lifetime Mortgage
5.5%
Fixed
60£70k£10k£600k Speak to an Advisor
Product Fee: Application £500
Figures as at 9th October 2017

Notes:
Where different fees apply according to location, the fee for England and Wales is shown.
* Example rate. The rate offered is based on your personal circumstances.

The Moneyfacts.co.uk Lifetime Mortgages comparison shows a selection of products chosen by our independent experts. Where we have been able to we have also provided a link for you to apply via Moneyfacts.co.uk today, or to speak to a specialist equity release adviser.

 

Why choose the Moneyfacts Equity Release Advice Service

The Moneyfacts Equity Release Advice Service is provided by MCB Financial Services who can help you decide if these schemes are right for you.

MCB Financial Services offers:

TickA friendly service

TickNo obligation advice service - fees are paid only on completion of your loan and with money raised from releasing equity

TickYour appointment can be held at your convenience at a time comfortable to you

TickMCB encourage you to involve your family and beneficiaries

TickYour adviser will explain how releasing equity from your property may affect your entitlement to state-benefits

TickMCB offer Whole of Market advice for lifetime mortgages from the following equity release providers:

  • Aviva
  • L&G
  • LV=
  • More 2 Life
  • Pure Retirement
  • Hodge
  • Just Retirement
  • Retirement Advantage
  • One Family

MCB Financial Services will be delighted to discuss your requirements with you and offer whole of market advice on lifetime mortgages. Simply fill in the form here and MCB will call you back for a no-obligation chat.

During your appointment, a specialist adviser will explain the different plans available including the pros and cons of each so you can make an informed decision.

Equity ReleaseAre you eligible?

To be eligible:

TickYou must be aged 55 or over i (youngest applicant if a couple)

TickOwn your own home of standard construction in the UK

TickYour property value must be £70,000 or above ii

How does equity release work?

There are two types of equity release schemes: Home Reversion and Lifetime Mortgages (AKA Equity Release mortgages). The best plan for you will depend on your personal circumstances so always seek professional advice based on your personal circumstances.

The advice service provided by our partner, MCB Financial Services, does not include advice on Home Reversion schemes. A Home Reversion scheme is where you sell part or all of your home at less than the market value for a tax-free lump sum or regular payment. Whilst you can still continue to own your home.

MCB Financial Services offer Whole of Market advice on Lifetime Mortgages

There are several different types of Lifetime Mortgage:

TickRoll-up Lifetime Mortgage

TickFlexible Drawdown Lifetime Mortgage

TickInterest Only Lifetime Mortgage

TickEnhanced Lifetime Mortgages

Each offers something slightly different, and the one that is right for you will depend on your personal circumstances.

Roll-up Lifetime Mortgages

With a roll-up lifetime mortgage, you borrow money against the value of your home. Unless you go into full-time care, you won't need to repay anything during your lifetime as your estate pays off the debt upon the sale of your home. If you do go into full-time care then the sale of your home will pay off the lifetime mortgage.

Interest payments will be added to the loan and can soon rack-up so it's vital to get good advice from a professional equity release expert, such as MCB Financial Services.

Equity Release

Drawdown Lifetime Mortgages

A drawdown lifetime mortgage allows you more freedom to release your money when you like. Your lender agrees to an overall sum of money you can borrow, which is set aside for you. You can take an initial lump sum and then withdraw smaller amounts when you need it (subject to minimum amounts).

Interest Only Lifetime Mortgages

An interest only lifetime mortgage could be a useful option for you if you have a regular income from other means. They work in the same way as regular lifetime mortgages, except that instead of allowing the interest to 'roll-up' you will be required to pay it off each month. The main advantage of this method is that you or your estate will only have to pay back the amount you borrowed initially as you will have kept up the interest only repayments. If circumstances change and you no longer want to make monthly repayments, there are schemes where you can revert to an interest roll up.

Enhanced Lifetime Mortgages

If you qualify for an enhanced lifetime mortgage, it could enable you to access better rates and/or borrow more money. These equity release mortgages are for people with specific medical conditions and/or lifestyle choices. You will need to disclose your medical history and lifestyle choices in a specially designed questionnaire to be assessed for eligibility for these products. If you think you may qualify for this type of lifetime mortgage, then discuss this with your equity release adviser as you could get a better deal. It is worth noting that not every equity release provider offers enhanced deals. These schemes are available on a roll-up or drawdown basis.

What are the benefits of choosing equity release?

With a lifetime mortgage, you can:

TickContinue to live in your home

TickContinue to own your home

TickLeave an inheritance for your loved ones by ring-fencing some of the value in your home iii

TickYou or your loved ones will never owe more than the value of your home iv

TickThe cash you unlock is tax-free, and can be a lump sum or released in stages v

Important considerations

It is vitally important that you understand the ramifications of releasing equity from your home with an equity release product. Whilst there are many advantages of doing so, there are also some considerable drawbacks you must consider before you take the plunge.

TickReleasing equity will reduce the value of your estate - you may not be able to leave as much to loved ones after you die, however, you can still make use of an Inheritance Protection Guarantee to ring-fence some of your estate for your heirs.

TickMost equity release mortgages do not require repayments during your lifetime (or if you go into full-time residential care) meaning the interest can build up rapidly.

TickIf you do decide to repay your lifetime mortgage before the term ends, you might have to pay an early repayment charge.

TickYour entitlement to means-tested state benefits might be affected.

Your adviser at MCB Financial will talk through all the advantages and disadvantages with you, based on your own personal circumstances so you can make an informed decision. You will be under no obligation to go ahead with anything and as fees are only paid upon completion you have nothing to lose by having that discussion.

Simply complete the short form here, and MCB will call you back, or call 0800 193 0036 to speak with someone now (lines open 9-5, Monday - Friday).

Annuities Abroad

How equity release can help you

With equity release you can stay living in the home you love and at the same time access the extra cash you need for your retirement. You can spend this on almost anything you want.

We've found popular uses to be:

TickGive family financial help or gifts

TickImprove or repair your home.

TickGo on a holiday of a lifetime or buy a new car

TickRe-mortgage - if you have an existing mortgage but do not want to continue making monthly payments

TickClear any current borrowing such as loans and credit cardsvi

Helping you make the right choice

The expert advisers at MCB Financial Services will let you know whether equity release is right for you and if not, will aim to help you find another way to get the money you need.

They'll take the time to understand your needs and concerns. You can relax knowing that the product you're recommended is provided by a member of the Equity Release Council, an industry body that helps ensure all products are safe and accessible for consumers.

As part of the service, your adviser will explain how releasing equity from your home may affect your entitlement to means-tested benefits.

There's no obligation or pressure to buy and you're encouraged to involve family or close friends into the discussion. If leaving inheritance is important to you, tell your adviser as it's possible to do both.

Get in touch today

Simply complete the short form here, and MCB will call you back, or call 0800 193 0036 to speak with someone now (lines open 9-5, Monday - Friday).

Find out more

Equity Release FAQs

Equity Release Jargon Buster

Equity Release Council

Lifetime Mortgages

MCB Financial Services Ltd, Unit 13/14 Beech Avenue Business Park, Taverham, Norwich, NR8 6HW.
MCB is authorised and regulated by the Financial Conduct Authority.


i Minimum age can vary between product providers

ii Property value can vary between product providers

iii This is an option called an Inheritance Protection Guarantee, speak with your adviser if this is important to you

iv This is called a No Negative Equity Guarantee and MCB Financial only advise on products that come with this.

v Some lifetime mortgages allow you to release the money in stages, which could save you money. Speak to your adviser for personalised advice

vi Consolidating an existing mortgage or current debt using equity release could end up costing more in the long term

 
 
Renovations number one reason for equity release
Renovations number one reason for equity release

Those unfamiliar with equity release will have many questions before they even consider using the eq... More

Pensioners earning £3,500 a month from property
Pensioners earning £3,500 a month from property

Retired homeowners who’ve paid off their mortgage have accumulated a record £1.101 trillion in prope... More

Potential equity release wealth passes £370bn
Potential equity release wealth passes £370bn

The potential wealth available to over-55s through equity release has risen to more than £372 billio... More

Close