The Best Lifetime Mortgage Rates November 2021 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 24/11/2021

Money unlocked from property via equity release is set to break the £4 billion this year, with homeowners taking out £2.989 billion via equity release in the first nine months of 2021, research released this month revealed.

Although the equity release market has remained strong this year, our research has found that since October, average equity release rates have been rising.

On 7 October 2021 the lowest initial equity release rate (MER) stood at 2.66% fixed, however just over a month later on 11 November, the lowest rate was 2.8% variable, with the lowest fixed rate standing at 2.96%.

To help homeowners decide whether a lifetime mortgage is right for them, below we’ve highlighted some of the most competitive rates available this month.

The plans highlighted 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 needs better – as such borrowers should speak to an equity release broker who will be able to select the best plans for individual requirements.

The best lifetime mortgage drawdown rates with a fee at a minimum 30% LTV

Provider Plan name AER (APR) Minimum property value Max LTV (%) at age 70 Interest payable Partial repayments* Fee
Legal & General Home Finance Flexible
Orange
3.19%
(3.3%)
£70,000 30.7% No Yes £599
Legal & General Home Finance Optional Payment Orange 3.19%
(3.3%)
£70,000 30.7% Yes No £599
Canada Life Lifestyle Select Gold (Flexible) 3.20%
(3.3%)
£70,000 31% No Yes £650

*Partial repayments of up to 10% per annum are permitted without an early repayment charge applying.

 

This month, Legal & General Home Finance had two highly competitive lifetime mortgage plan at a 30% LTV that charges a fee. Both its Flexible Orange and Optional Payment Orange plans offer 3.19% AER (3.3% APR). These plans are available to those with a property valued at a minimum £70,000 and who have maximum of 30.7% at the age of 70. A minimum advance of £10,000 can be taken. The Flexible Orange plan does not allow interest to be paid but partial repayments can be made, while Optional Payment Orange allows interest to be repaid but does not permit partial repayments. These plans both charge a fee of £599.

Canada Life also had a competitive lifetime mortgage plan at a minimum 30% loan-to-value (LTV) that charges a fee. Its Lifestyle Select Gold (Flexible) deal offers 3.20% AER (3.3% APR), which is available to those with a maximum 31% LTV at the age of 70. To be eligible for this deal, properties must be valued at a minimum of £70,000. A minimum advance of £10,000 can be taken. This plan does not allow interest to be paid by partial repayments can be made. It charges a fee of £650.

The best lifetime mortgage drawdown rates without a fee a minimum 30% LTV

Provider Plan name AER (APR) Minimum property value Max LTV (%) at age 70 Interest payable Partial repayments*
More 2 Life Capital Choice Super Lite Drawdown 3 3.15%
(3.2%)
£100,000 31% No Yes
LV= Lifetime Mortgage Drawdown+ Standard 2 3.18%
(3.2%)
£100,000 30% No

 

Yes

LV= Lifetime Mortgage Drawdown+ Standard 2 - 1% CB 3.19%
(3.2%)
£100,000 30% No Yes

*Partial repayments of up to 10% per annum are permitted without an early repayment charge applying.

 

Homeowners looking for a lifetime mortgage at a minimum 30% LTV that does not charge a fee will find that this month More 2 Life had a highly competitive plan. Its Capital Choice Super Lite Drawdown 3 offers 3.15% AER (3.2%) and is available to those with a maximum of 31% LTV at the age of 70. Properties must be valued at a minimum of £100,000. A minimum advance of £10,000 can be taken. Interest is not payable but partial repayments are permitted.

LV= had two competitive plans at minimum of 30% LTV with no fee this month. Its Lifetime Mortgage Drawdown+ Standard 2 plan offers 3.18% AER (3.2% APR) and its Lifetime Mortgage Drawdown+ Standard 2 – 1% CB has a rate of 3.19% AER (3.2% APR). For both plans properties must be valued at a minimum of £100,000 and a minimum advance of £10,000 can be taken. Interest is not payable but partial repayments are permitted.

The best lifetime mortgage drawdown rates with a fee at minimum 40% LTV

Provider Plan name AER (APR) Minimum property value Max LTV (%) at age 70 Interest payable Partial repayments* Fee
Legal & General Home Finance Flexible Indigo 3.78%
(3.9%)
£70,000 41.2% No Yes £599
Legal & General Home Finance Optional Payment Indigo 3.78% (3.9%) £70,000 41.2% Yes No £599
Pure Retirement Heritage Drawdown Plus Standard Package 3.87% (4.0%) £70,000 40% No Yes £895

*Partial repayments of up to 10% per annum are permitted without an early repayment charge applying.

 

Homeowners looking for a lifetime mortgage plan that is available to those with a minimum 40% LTV and which charges a fee will find that Legal and General Home Finance offers two competitive plans. The Flexible Indigo and Optional Payment Indigo pay 3.78% (3.9% APR). To be eligible a maximum 41.2% LTV at the age of 70 is needed and properties must be valued at a minimum £70,000. A minimum advance of £10,000 can be taken. The Flexible Indigo plan does not allow interest to be paid but partial repayments can be made, while Optional Payment Indigo allows interest to be repaid but does not permit partial repayments. These plans both charge a fee of £599.

Pure Retirement also offers a competitive plan on its Heritage Drawdown Plus Standard Package which pays 3.87% AER (4.0% APR). To be eligible, a maximum 40% LTV at the age of 70 is needed and properties must be valued at a minimum £70,000. A minimum advance of £10,000 can be taken. Partial repayments can be made, but interest is not payable. It charges a fee of £895.

The best lifetime mortgage drawdown rates without a fee at minimum 40% LTV

Provider Plan name AER (APR) Minimum property value Max LTV (%) at age 70 Interest payable Partial repayments*
More 2 Life Ltd. Capital Choice Max 2 Drawdown 3.67%
(3.7%)
£100,000 40.03% No Yes
Legal & General Home Finance Flexible Indigo 3.82%
(3.9%)
£70,000 41.2% No Yes
Legal & General Home Finance Optional Payment Indigo 3.82%
(3.9%)
£70,000 41.2% Yes No

*Partial repayments of up to 10% per annum are permitted without an early repayment charge applying.

 

More2Life Ltd had a highly competitive plan this month for those looking for a lifetime mortgage at a minimum 40% LTV and which does not charge a fee. Its Capital Choice Max 2 Drawdown offers 3.67% AER (3.7% APR), which is available to homeowners with a maximum 40.03% LTV at the age of 70. Properties must be valued at a minimum of £100,000 and borrowers can take a minimum advance of £10,000. Interest cannot be paid but partial repayments can be made.

Legal & General Home Finance had two plans offering competitive rates this month for those looking for a fee-free plan at a minimum 40% LTV. Both its Flexible Indigo and Optional Payment Indigo plans offer 3.82% AER (3.9% APR), which are available to those with a maximum 41.2% LTV at the age of 70. Both plans require properties to be valued at a minimum of £70,000. A minimum advance of £10,000 can be taken. Flexible Indigo allows partial repayments but interest is not payable, while Optional Payment Indigo allows interest payments but partial repayments cannot be made.

How these charts have been compiled

These charts have been compiled from all equity release drawdown products listed by Moneyfacts on 24 November 2021. 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 as such there may be cheaper rates available on deals providing a lump sum only.

Disclaimer

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.

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