The following table compares equity release interest rates from some of the UK’s leading lifetime mortgage lenders. Other schemes are available so it’s worth speaking to an equity release specialist like Age Partnership who can compare lifetime mortgage interest rates across the whole market.
Please note: Rates correct as at 21st April 2021. Rates vary by provider & depend on your personal circumstances and whether you prefer a cash lump sum or an income - LATEST OFFER September 2021 - 2.46% AER special deal through Age Partnership when you use our calculator.
How to compare equity release schemes
To compare equity release schemes you first need to understand the various types of lifetime mortgage available and 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 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 is the average interest rate on equity release?
The average interest rate is currently 3.95%, based on lifetime mortgages across the UK. The average rate across 2018 and 2019 was significantly higher and the good news is that the best interest rate today is 2.75%. Subject to suitable eligibility criteria including age and property type.
Where to find the best equity release interest rates
To compare lifetime mortgages and find the best interest rates on equity release, it helps to get the right advice from a specialist. They will explain how releasing equity from your home could work for you, help you consider alternative options and compare schemes.
However, be aware that some specialists are tied to a select number of companies, so only able to compare their plans. To get the best equity release advice it’s important to use an independent broker or IFA who compares the whole of the market, leaving no stone unturned.
Also, some advisers will charge for their initial advice while others will provide it for free, only charging a fee if you decide to go ahead.
So compare the cost of advice from brokers as this could also save you money.
Compare equity release with Age Partnership
Age Partnership is one of the UKs leading equity release specialists. They compare equity release schemes across the whole of the market and their initial advice is free. They have agreed special rates with lenders you may not be able to get elsewhere, as well as extra incentives.
In fact, Age Partnership are so confident in the service they offer, they will give you £500 if you find a better like for like quote elsewhere.