Lifetime Mortgage - Equity Release |

Equity Release - Lifetime Mortgages

  - Compare lifetime mortgage providers with our equity release selection. Alternatively speak to an adviser to explore your retirement income options.

Compare Lifetime Mortgages

Provider APR Fixed/VariableMin ageMin property valueMin loanMax loan 
Legal & General Home Finance
Flexible Lifetime Mortgage
Flexible Lifetime Mortgage
55£100k£10k£4m Speak to an Advisor
Product Fee: No Fee 
Lifetime Mortgage – Lump Sum+
Lifetime Mortgage – Lump Sum+
60£70k£10k£500k Speak to an Advisor
Product Fee: £595 
More 2 Life
Capital Choice
Capital Choice
60£70k£15k£1m Speak to an Advisor
Product Fee: No Fee 
Lifetime Flexible Option
Lifetime Flexible Option
55£75k£15k£600k Speak to an Advisor
Product Fee: Arrangement £5
Drawdown Lifetime Mortgage
Drawdown Lifetime Mortgage
60£70k£10k£600k Speak to an Advisor
Product Fee: Application £500
Hodge Lifetime
Lump Sum Lifetime Mortgage
Lump Sum Lifetime Mortgage
60£100k£20k£500k Speak to an Advisor
Product Fee: Application £595
Figures as at 16th August 2017

Providers may have multiple entries.
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. Best Buys show the best products chosen by our independent experts. Where we have been able to we have also provided a link for you to apply via today. Products shown with a yellow background are sponsored products.


LTV or loan to value is the maximum percentage of the value of your home that the equity release provider is willing to loan you. Although the money released to you is a loan, the amount owed (the original loan plus interest accrued) may not need to be repaid until your home is sold either when you die or move into permanent long-term care. Some plans require some or all of the interest due to be paid monthly. Equity release loan to values tend to be much lower than for conventional mortgages and will often vary according to age – the older the applicant, the higher the LTV available.


Equity release: lifetime mortgages explained

Lifetime mortgages are the most common type of equity release plan, and work by lending you a percentage of your home's value. The cash you receive is tax-free and can be spent on almost anything you want. The older you are, the more you may be able to borrow.

How do lifetime mortgages work?

The loan is secured against your home but you don't have to make any repayments like you would with a standard mortgage. Instead, the interest that is charged rolls up, gradually increasing the amount you owe throughout your lifetime. When the last person named on the lifetime mortgage and living in the property passes away or moves into permanent long-term care, the property will be sold and the lifetime mortgage repaid. Of course, with some plans, you can choose to make regular or ad hoc repayments should you wish to.

You can still leave behind a legacy to your loved ones but releasing equity will reduce the value of your estate. So, it's best to speak with a specialist adviser, as well as anyone who stands to inherit before taking out an equity release plan.

Advantages and disadvantages of lifetime mortgages

Lifetime Mortgages
Advantages Disadvantages

  • You can get a tax-free lump-sum or a regular income.

  • Alternatively, with a drawdown lifetime mortgage you can access the tax-free cash as and when you need it. This means that you're only charged interest on the actual amount you use (remember, you're charged interest on the loan amount and any interest gained during that period).

  • You don't have to make any regular repayments but if you prefer, you can choose a plan that allows you to make regular or ad hoc repayments.

  • The lifetime mortgage is repaid at the end of the plan. This is usually when the last plan holder living in the property passes away or moves permanently into long-term care.

  • You have the option to leave an inheritance (with an Inheritance Protection Guarantee).

  • You continue to own your home so if property prices increase, you benefit from it.

  • You can move house after releasing equity provided the new property meets your equity release provider's lending criteria.

  • Younger borrowers can't borrow as much.

  • The amount you owe increases during your lifetime as interest accumulates and is added to the loan. This reduces the value of your estate and possibly erodes any inheritance you could leave behind.

  • Equity release could affect your entitlement to means-tested state benefits.

  • If you decide to repay your lifetime mortgage early there may be an early repayment charge.

  • Depending on property prices and how long you live, you could owe as much as 100% of your home's value to the lifetime mortgage provider.

  • The interest on a lifetime mortgage may be higher than the interest on a standard mortgage.

  • Charges for equity release advice, valuation fees and solicitors fees may apply, as well as admin fees.

What next?

Call the Moneyfacts Equity Release Advice Service provided by MCB Financial Services. There’s no obligation to buy, but a fee of £999 is payable should you proceed to take out a plan that MCB recommends.

MCB’s advice is always quality checked and you’ll only be recommended a product where neither you nor your loved ones will ever owe more than the value of your home. Their expert team can answer your questions, guide you through the process and help you make the right decision for your circumstances.

As releasing equity can affect your entitlement to state benefits, your adviser will assess the impact on any State Benefits you receive. Equity Release home

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Equity release jargon buster

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