
Last updated: 13th April 2022
The Equity Release Council’s Spring 2022 Report continues to show evidence that lifetime mortgages make a significant yet stable contribution to later life lending. Key points of the report, published earlier in April, confirm that average equity release rates are creeping up, in line with other mortgage lending and the degree of flexibility offered to borrowers through the ability to make either regular interest payments or ad hoc partial repayments is also increasing.
The plans listed below are not endorsed by Moneyfacts.co.uk but have been chosen as they offer competitive rates for the scenario that we have selected. It should be noted that other plans are available that offer similar competitive rates but may offer incentives, such as cashback, that suit the borrower’s need better. Borrowers should speak to an equity release broker who will be able to select the best plans for individual requirements.
Provider | Plan name | AER (APR) | Minimum property value | Max loan-to-value (%) at age 70 | Interest payable | Partial repayments* | Fee |
Canada Life | Lifestyle Select Gold (Flexible) | 3.92% (4.1%) |
£70,000 | 31 | No | Yes | £650 |
Legal & General Home Finance | Flexible Orange - £599 fee | 3.98% (4.1%) |
£70,000 | 30.7 | No | Yes | £599 |
Legal & General Home Finance | Optional Payment Orange | 3.98% (4.1%) |
£70,000 | 30.7 | Yes | No | £599 |
*Partial repayments of up to 10% per annum are permitted without an early repayment charge applying.
This month, Canada Life’s Lifestyle Select Gold plan offers the best rate of 3.92% AER (4.1% APR) which is available to homeowners with a maximum 31% LTV at the age of 70. This deal requires properties to be valued at a minimum of £70,000 and a minimum advance of £10,000 can be taken. This plan charges a fee of £650.
Legal and General Home Finance’s Flexible Orange and Optional Payment Orange products are the next most competitive plans this month for plans with a fee at a minimum 30% LTV. Both plans offer 3.98% AER (4.1% APR). These plans are available to homeowners with a maximum 30.7% LTV at the age of 70 and properties must be valued at a minimum of £70,000. The Flexible Orange plan does not allow interest to be paid but partial payments can be made, while the Optional Payment Orange plan allows interest to be paid but doesn’t allow partial repayments. Both plans charge a fee of £599.
Provider | Plan name | AER (APR) | Minimum property value | Max loan-to-value (%) at age 70 | Interest payable | Partial repayments* |
More 2 Life |
Capital Choice Superlite Drawdown 3 |
3.55% |
£100,000 |
31 |
No |
Yes |
LV= |
Lifetime Mortgage Drawdown+ Standard 2 |
3.59% |
£100,000 |
30 |
No |
Yes |
LV= |
Lifetime Mortgage Drawdown+ Standard 2 - 1% CB |
3.60% |
£100,000 |
30 |
No |
Yes |
*Partial repayments of up to 10% per annum are permitted without an early repayment charge applying.
More 2 Life has the most competitive plans this month for plans without a fee at a minimum 30% LTV. The Capital Choice Superlite Drawdown 3 offers 3.55% AER (3.6% APR) available to those with a maximum 31% LTV at the age of 70. Properties must be valued at a minimum of £100,000 and a minimum advance of £10,000 can be taken. Interest is not payable although partial repayments are allowed.
LV= has the two next best plans this month. The Lifetime Mortgage Drawdown+ Standard 2 has a rate of 3.59% AER (3.6% APR), while the Lifetime Mortgage Drawdown+ Standard 2 - 1% cashback version has a rate of 3.60% (3.6% APR). Each plan requires properties to be valued at a minimum of £100,000 and a minimum advance of £10,000 being allowed. Both plans are available to those with a maximum of 30% LTV at the age of 70.
Provider | Plan name | AER (APR) | Minimum property value | Max loan-to-value (%) at age 70 | Interest payable | Partial repayments* | Fee |
Pure Retirement |
Heritage Drawdown Plus Standard Package - (Fixed ERCs) |
4.28% |
£70,000 |
40.7 |
No |
Yes |
£895 |
Legal & General Home Finance |
Flexible Indigo - £599 fee |
4.64% (4.7%) | £70,000 | 41.2 | No | Yes | £599 |
Legal & General Home Finance |
Optional Payment Indigo - £599 fee |
4.64% |
£70,000 |
41.2 |
Yes |
No |
£599 |
*Partial repayments of up to 10% per annum are permitted without an early repayment charge applying.
Homeowners looking for a lifetime mortgage plan at a minimum 40% LTV that charges a fee will find Pure Retirement’s Heritage Drawdown Max Standard Package offering 4.28% AER (4.4% APR). This plan is available to those with a maximum 40.7% LTV at age 70 and properties need to be valued at a minimum of £70,000. This plan charges a fee of £895.
Another option available to homeowners is Legal & General’s Indigo plans. The Flexible Indigo and Optional Payment Indigo plans offer 4.64% AER (4.7% APR) and are available to those with a maximum 41.2% LTV at age 70. The Flexible Indigo plan does not allow interest to be paid but partial payments can be made, while the Optional Payment Indigo allows interest to be paid but doesn’t allow partial repayments. Both plans charge a fee of £599.
Provider | Plan name | AER (APR) | Minimum property value | Max loan-to-value (%) at age 70 | Interest payable | Partial repayments* |
More 2 Life |
Capital Choice Max 2 Drawdown |
4.05% (4.1%) |
£100,000 |
40.03 |
No |
Yes |
More 2 Life |
Capital Choice Max 3 Drawdown |
4.15% (4.2%) |
£100,000 |
41 |
No |
Yes |
More 2 Life |
Tailored Lifetime 5 Drawdown | 4.18% (4.2%) | £70,000 | 42.4 | No | Yes |
*Partial repayments of up to 10% per annum are permitted without an early repayment charge applying.
This month, More 2 Life has the most competitive lifetime mortgage plans for a minimum 40% LTV that do not charge a fee. Its Capital Choice Max 2 Drawdown plan offers 4.05% AER (4.1% APR) and is available to those with a maximum 40.03% LTV at the age of 70. To be eligible for this plan, properties must be valued at £100,000 minimum. More 2 Life’s Capital Choice Max 3 Drawdown also has a highly competitive rate of 4.15% AER (4.2% APR). This plan is available with a maximum 41.1% at age 70%. Interest cannot be paid but partial repayments can be made on both plans.
Finally, More 2 Life’s Tailored Lifetime 5 Drawdown plan offers 4.18% AER (4.2% APR). This plan is available to those with a maximum 42.4% LTV at age 70 and properties valued at a minimum of £70,000. This plan does not allow interest to be paid but does allow partial repayments to be made.
These charts have been compiled from all equity release drawdown products listed by Moneyfacts on 13 April 2022. The products chosen have been selected from equity release products available to joint applicants and are based on a scenario where the youngest borrower is aged 70. The deals selected all offer drawdown, and there may be cheaper rates available on deals providing a lump sum only.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.