*Updated 2nd December 2025*
Equity release allows homeowners aged 55+ to unlock some of the value tied up in their property, without having to move house. Most plans are lifetime mortgages, where you borrow money secured against your home at a fixed rate of interest. The loan, plus interest, is repaid when you pass away or move into long-term care.
Interest rates are a critical factor in how much equity release will cost you overall. Even small differences in rates can make a big difference to the final amount owed because interest compounds over time. In this guide, we compare typical rates across major UK providers and explain how much the amount you borrow could grow into as a debt to be repaid
Current Equity Release Interest Rates in the UK - December 2025
Please note: Rates correct as at 2nd December 2025. Rates vary by provider and are subject to change, depending on your personal circumstances and whether you prefer a cash lump sum or an income. LATEST OFFER: 6.50% MER special deal through Age Partnership when you use our calculator.
At a Glance - Key Points This Article Covers
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Current equity release interest rates in December 2025 typically range from 6.26% to 6.90% MER (monthly equivalent rate).
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Age Partnership can access rates starting from around 6.25%, as they compare deals across leading lenders to find the best option for you.
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A £50,000 release at 6.25% could more than double in 15 years, reaching a repayment amount of over £105,000.
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Choosing the right plan via expert, independent advice is as important as the rate itself.
How do I compare equity release rates?
To compare equity release rates, review offers from multiple providers, check if the interest is fixed or variable, and use a comparison tool to evaluate total costs over time. You can speak to a regulated financial advisor for tailored recommendations.
To compare equity release schemes you first need to establish your requirements. For example:
- How much money do you want to release?
- Do you meet the eligibility criteria for a lifetime mortgage?
- Do you want to protect a percentage of your property value as an inheritance for your family?
- Would you like to repay some or all of the interest?
- Would you like a single lump sum or a cash reserve you can draw on when you wish?
As well as comparing equity release interest rates, it’s important to consider other factors such as early repayment charges and any incentives or cashback offers in place that make the offer more appealing.
What was the average interest rate on equity release in 2025?
According to the Equity Release Council, the average interest rate is just over 7%, based on lifetime mortgages across the UK. The best interest rate today is 6.26% MER. Subject to suitable eligibility criteria including age and property type.
Provider Comparison – December 2025 (Ranked by typical interest rate)
| Provider |
Typical Interest Rate (MER) |
What They Offer
|
Customer Rating*
|
|
Aviva
|
from ~6.35% |
One of the UK’s biggest providers, wide choice of lifetime mortgages, ERC-member guarantees |
Trustpilot 4.3★
(10k+ reviews)
|
|
Pure Retirement
|
from ~6.26%
|
Specialist equity release lender with flexible features such as partial repayments
|
4.6★ Trustpilot
Less than 500 reviews
|
|
More2Life
|
from ~6.50% |
Large specialist lender, strong focus on product innovation and drawdown options
|
4.4★ Trustpilot
1k+ reviews
|
|
Legal & General
|
from ~6.55%
|
Well-known national brand, extensive adviser support, range of lifetime mortgage plans |
4.2★ Trustpilot
24k+ reviews |
|
Age Partnership (broker & adviser)
|
Access to whole-of-market rates (lowest currently ~6.25%) |
Compares deals across multiple providers to find tailored plans, free calculator tool, independent advice |
4.6★ Trustpilot
9k+ reviews
|
💡 Note: Age Partnership isn’t itself a lender but works as an expert adviser and broker. This means they can compare deals from providers like Aviva, Pure Retirement, and More2Life to help you find the most competitive rate for your circumstances.
* Ratings based on Trustpilot (Aug 2025).
How Interest Costs Add Up
Here’s an example of how much a £50,000 equity release loan could grow over time:
|
Years After Taking Plan
|
Balance Owed at 6.25% MER |
Balance Owed at 6.55% MER
|
|
5 years
|
£68,000
|
£69,500
|
|
10 years
|
£92,500 |
£95,000 |
|
15 years
|
£105,000
|
£110,000
|
*Figures are approximate and for illustration only. The actual costs will depend on your plan, provider, and repayment options.
👉 Even a small difference in rates can add thousands of pounds to the final repayment.
What Interest Rate Am I Likely to Achieve?
Equity release rates vary depending on your age, property value, and whether you’re applying alone or as a couple. Here are some simple examples to illustrate how lenders typically fix rates:
|
Example
|
Profile
|
Typical Rate*
|
What This Means |
| 1. Single homeowner |
Age 71, property worth £600,000 |
~5.8% fixed
|
Older age and a higher-value property reduce risk, so the rate is more competitive.
|
|
2. Couple
|
Both aged 67, property worth £300,000 |
~6.2% fixed
|
Slightly younger age and lower property value mean a higher rate.
|
| 3. Single homeowner |
Age 55, property worth £200,000 |
~6.6% fixed |
At the minimum eligible age of 55, rates are higher because of the longer expected loan term linked to life expectancy |
*Rates are indicative, based on December 2025 market data. The actual rate you’re offered will depend on your circumstances and the lender’s criteria at the time.
👉 As these examples show, the younger you are when you take out an equity release policy, the higher your rate and ultimate repayment are likely to be.
Things to Watch Out For
- Compound interest – the repayment amount grows quickly if you don't make any repayments.
- Impact on inheritance – less of your estate may be left to give to your family.
- Benefits eligibility – lump sums could affect means-tested benefits.
- Fees and features – arrangement fees, early repayment charges, and flexibility vary between plans.
Why Consider Age Partnership?
✔ Access to whole-of-market deals – they compare leading providers to help find the lowest rate of interest and best plan available for your circumstances.
✔ High customer satisfaction – 4.6★ on Trustpilot (9k+ reviews).
✔ Free equity release calculator – to see what you could unlock.
✔ ERC-approved plans only – ensuring safeguards like the no negative equity guarantee.
❌ Not a lender – they arrange plans rather than provide them directly.
❌ Additional fees may apply – although often absorbed into the plan, check with your adviser.
Conclusion
Equity release rates in 2025 are hovering around 6.25% to 6.55%, and even small differences can really matter over time. While big names like Aviva, More2Life, and Legal & General offer strong options, Age Partnership stands out for whole-of-market access, very strong customer satisfaction ratings, and tailored advice delivered in plain English without a pushy sales pitch.
The right plan depends on your circumstances. Always seek independent regulated advice before making a decision.