Compare Equity Release Interest Rates 2026
Equity release interest rates in 2026 typically range from around 6.65% to 8.34%, and even small differences can significantly affect how much you owe over time due to compound interest. Comparing whole-of-market deals through an independent adviser can help you secure a more competitive rate and a plan that best suits your circumstances.
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How to Compare Equity Release Plans
Choosing an equity release plan involves more than simply finding the lowest interest rate. The most suitable product will depend on your financial goals, how you intend to use the money and the level of flexibility you may need in the future.
For example, if you don't need all the money immediately, a drawdown lifetime mortgage may help reduce the amount of interest charged because interest is only applied to the funds you've actually withdrawn. Similarly, if leaving an inheritance is important to you, you may wish to consider products that offer inheritance protection or allow voluntary repayments.
It's also worth reviewing the lender's early repayment charges and downsizing protection. These features can become important if you later decide to move home or repay part of the mortgage earlier than expected.
Rather than focusing on a single feature, compare the overall value each product offers. A slightly higher interest rate may be worthwhile if the mortgage includes greater flexibility or features that better support your retirement plans.
A regulated equity release adviser can compare products from across the market and explain the differences between lenders, helping you make an informed decision.
What to Compare
Feature | Why It Matters |
Interest rate | Affects the long-term cost of borrowing |
Drawdown facility | Interest is only charged on money you've withdrawn |
Voluntary repayments | Can reduce compound interest over time |
Early repayment charges | Important if your plans change |
Inheritance protection | Helps preserve part of your estate |
Downsizing protection | Makes it easier to move home later |
Quick summary
- Equity release plans vary by interest rates, repayment flexibility, inheritance protection, fees and eligibility criteria. Comparing providers carefully matters.
- Most equity release products in the UK are lifetime mortgages designed for homeowners aged 55 and over.
- Drawdown lifetime mortgages can reduce long-term interest build-up because funds are released in stages rather than as one large lump sum.
- Some providers allow voluntary repayments, which can help reduce compound interest over time.
- Early repayment charges, adviser fees and property criteria can affect whether a plan is suitable for your circumstances.
- The lowest rate is not always the best option. Features and long-term flexibility can be just as important.
At a Glance
| Provider | MER | Type | Product Example | Calculator Option | Trustpilot Score |
|---|---|---|---|---|---|
| Aviva | 6.25% | Fixed Lump Sum | Lifestyle Lump Sum Max | Online calculator | 4.3★ |
| Aviva | 6.43% | Drawdown | Lifestyle Flexible Option | Online calculator | 4.3★ |
| Pure Retirement | 6.23% | Fixed Lump Sum | Classic Lifetime Mortgage | Adviser quote | 4.7★ |
| Pure Retirement | 6.42% | Drawdown | Heritage Drawdown | Adviser quote | 4.7★ |
| More2Life | 6.40% | Drawdown | Flexi Choice Drawdown | Calculator + adviser | 4.6★ |
| More2Life | 6.50% | Flexible | Flexi Choice | Calculator + adviser | 4.6★ |
| Legal & General | 6.77% | Drawdown | Optional Payment Lifetime Mortgage | Online calculator | 4.3★ |
| Legal & General | 7.05% | RIO / Interest Only | Retirement Interest Only | Calculator + adviser | 4.3★ |
| Canada Life | 6.69% | Drawdown | Capital Select Drawdown | Adviser quote | 4.3★ |
| Canada Life | 6.96% | Lump Sum | Capital Select Lump Sum | Adviser quote | 4.3★ |
| LV= | 6.56% | Drawdown | Lifestyle Drawdown | Calculator + adviser | 4.5★ |
| LV= | 6.71% | Lump Sum | Lifestyle Lump Sum | Calculator + adviser | 4.5★ |
| Just Retirement | 7.05% | Drawdown | Just For You Drawdown | Online calculator | 4.2★ |
| Just Retirement | 7.20% | Lump Sum | Just For You Lump Sum | Online calculator | 4.2★ |
Rates shown are representative market examples available during 2026 and are subject to change. The interest rate you are offered will depend on personal circumstances.
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Individual Provider Reviews
Aviva
Trustpilot rating: 4.3★ 59K reviews (company-wide reviews)
Overview
Aviva is one of the largest later-life lending providers in the UK. It offers a range of lifetime mortgages designed for homeowners looking for either a lump sum or flexible drawdown borrowing option. Aviva is known for offering voluntary repayment features and flexible underwriting on some plans.
Product Example Used:
Lifestyle Flexible Option
| Key Features | Extra Fees | Pros | Cons |
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Pure Retirement
Trustpilot rating: 4.7★ 503 reviews
Overview
Pure Retirement specialises in lifetime mortgages and is frequently among the providers offering lower market rates. It provides both standard and enhanced products with inheritance protection and flexible borrowing options.
Product Example Used:
Classic Lifetime Mortgage
| Key Features | Extra Fees | Pros | Cons |
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More2Life
Trustpilot rating: 4.6★ 1K reviews
Overview
More2Life offers flexible equity release products aimed at homeowners with varying borrowing needs. The lender is known for tailored underwriting and repayment flexibility, particularly for customers looking for drawdown access and enhanced lending options.
Product Example Used:
Flexi Choice
| Key Features | Extra Fees | Pros | Cons |
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Legal & General
Trustpilot rating: 4.3★ 31K reviews (company-wide reviews)
Overview
Legal & General is a major UK lender offering both lifetime mortgages and retirement interest-only mortgage options. It is known for strong product flexibility and repayment options.
Product Example Used:
Optional Payment Lifetime Mortgage
| Key Features | Extra Fees | Pros | Cons |
|---|---|---|---|
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Canada Life
Trustpilot rating: 4.3★ 944 reviews
Overview
Canada Life offers lifetime mortgage products with inheritance protection and voluntary repayment features. It is commonly used by homeowners looking for flexible long-term borrowing.
Product Example Used:
Capital Select
| Key Features | Extra Fees | Pros | Cons |
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LV=
Trustpilot rating: 4.5★ 85K reviews (company-wide reviews)
Overview
LV= provides equity release products focused on flexibility and customer support. It offers lump sum and drawdown lifetime mortgages with optional repayment features.
Product Example Used:
Lifestyle Drawdown
| Key Features | Extra Fees | Pros | Cons |
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Just For You Retirement (formerly Just Retirement)
Trustpilot rating: 4.2★ 609 reviews
Overview
Just Retirement specialises in later-life lending and enhanced lifetime mortgage products. It is often considered by homeowners with medical conditions or more complex borrowing needs.
Product Example Used:
Just For You Lifetime Mortgage
| Key Features | Extra Fees | Pros | Cons |
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How Does Interest Add Up?
Equity release uses compound interest. This means interest is charged on both the original loan and the interest already added to it.
For example, a £50,000 lifetime mortgage can grow significantly over time depending on the interest rate applied. Look at the table below to see how this varies with the lowest and highest MER over time.
| Years after taking plan | 6.23% MER | 9.56% MER |
|---|---|---|
| 5 Years | ~£67,650 | ~£78,900 |
| 10 Years | ~£91,500 | ~£124,500 |
| 15 Years | ~£123,800 | ~£196,500 |
These examples show why interest rates and repayment flexibility matter when comparing plans.
How This Affects Different Homeowners
- Single homeowner aged 70+ Older applicants may qualify for higher borrowing amounts because lenders expect a shorter loan duration.
- Couple aged 60+ Plans usually continue until the last surviving homeowner dies or moves into long-term care, which can increase long-term interest costs.
- Single homeowner aged 55+ Borrowing earlier can significantly increase compound interest because the loan has longer to grow.
Things To Look For
Compound interest can cause the total repayment amount to grow quickly if no repayments are made over time. Equity release may also reduce the inheritance left to family members and could affect eligibility for means-tested benefits.
Arrangement fees, early repayment charges and repayment flexibility can also vary significantly between plans.
How To Choose the Best Equity Release for You?
We suggest following this practical step-by-step process when choosing an equity release plan:
- Start by checking whether you meet the minimum age and property requirements. Most plans are available to homeowners aged 55 and over with sufficient equity in their property.
- Next, decide how much money you need and whether a lump sum or drawdown plan is more suitable. Drawdown plans can help reduce interest because funds are only borrowed when needed.
- Compare rates carefully, but do not focus only on the headline rate. Look at fees, repayment flexibility, inheritance protection and early repayment charges as well.
- Check whether the provider allows voluntary repayments. This can reduce the amount of compound interest building over time.
- Consider the effect on inheritance, benefits and future care plans.
- It is also important to consider alternatives. Look into downsizing, retirement interest-only mortgages, remortgaging or using savings.
- Before proceeding, speak to a regulated equity release adviser. They can compare products across the market and explain the long-term impact.
Why Consider Age Partnership?
Age Partnership compares plans from across the equity release market to help homeowners find competitive rates and features suited to their circumstances.
The company has a strong customer reputation, with a 4.6★ Trustpilot rating from more than 9,000 reviews. It offers a free equity release calculator for quick estimates.
All recommended plans are from Equity Release Council-approved lenders, which helps ensure safeguards such as the no negative equity guarantee. However, Age Partnership acts as a broker rather than a lender, meaning it arranges plans instead of providing them directly.
Additional adviser or arrangement fees may apply depending on the plan selected, although some costs can be absorbed into the loan.
Conclusion
The best equity release plan depends on far more than the lowest advertised interest rate. Features such as repayment flexibility, inheritance protection, early repayment charges and drawdown access can all affect the long-term suitability of a plan.
Comparing providers carefully is important. Rates, lending criteria and product features vary widely across the market. Even a small difference in interest rates can significantly affect the total amount repaid over time due to compound interest.
Homeowners should also consider alternatives. Downsizing, retirement interest-only mortgages or using other savings might be viable options.
Speaking to a regulated adviser can help you understand the long-term impact. They can also help in comparing products across the market.
Use our equity release calculator or request personalised advice to explore how much you could release. This helps determine which plans may suit your circumstances best.
Next steps
Take a look around to find useful information on everything from the costs involved, how much you can get , frequently asked questions and lots more helpful information.
Or use our equity release calculator to get an idea of how much money you could unlock from your home.
Try the calculator
FAQs
A home equity loan lets you borrow a lump sum using the equity you’ve built up in your property as collateral. Your equity is the difference between your home’s market value and any outstanding mortgage. You repay the loan over a fixed term with fixed monthly payments, and failure to repay could put your home at risk.
Our equity release expert’s view
How much money could you release?
To see how much equity you could release from your home, use our free and easy-to-use calculator.
Try the calculatorMore information on equity release:
Next steps
Take a look around to find useful information on everything from the costs involved, how much you can get , frequently asked questions and lots more helpful information.
Or use our equity release calculator to get an idea of how much money you could unlock from your home.
Try the calculator
How this site works
Our aim is to provide you with clear and accurate information to help you research your chosen financial products and services. The material on this site is for general information only and does not constitute any form of advice or recommendation.
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None of the above arrangements constitute advice or recommendations, as other products and companies are available. You should always obtain independent, professional advice for your own situation.
The information provided on this site is accurate at the date of publication, occasionally however, things will change before we have had the opportunity to update them, so please do check. Always do your own research and take independent advice.
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Over50choices is an independent company and regulated by the FCA (No.594280) for insurance products only and a member of the Equity Release Council.