Compare Equity Release Interest Rates 2026

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By Clare Townhill • Updated May 2026
Disclaimer: Prices and ratings correct at time of writing.

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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    *Updated May 2026*

    Compare equity release in 2026

    Equity release can provide homeowners aged 55 and over with access to tax-free cash tied up in their property. However, plans can vary significantly in terms of interest rates, repayment flexibility, inheritance protection and long-term costs.

    Comparing providers carefully is important because the lowest rate does not always mean the best overall option. This guide compares some of the leading equity release providers in the UK for 2026. It includes their features, rates and flexibility, to help you understand which type of equity release may suit your circumstances.

    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.

    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
    • Drawdown and lump sum options
    • Voluntary repayments available
    • Fixed rates for life
    • Downsizing protection on selected plans
    • Adviser fees may apply
    • Legal fees
    • Possible valuation costs
    • Competitive rates
    • Established UK provider
    • Flexible repayment options
    • Good drawdown flexibility
    • Early repayment charges may apply
    • Property restrictions on some plans

    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
    • Competitive fixed rates
    • Drawdown facilities
    • Inheritance protection options
    • Voluntary repayments available
    • Adviser fees may apply
    • Possible arrangement fees
    • Legal fees
    • Often among lowest rates
    • Strong drawdown flexibility
    • Multiple options available
    • Control of your lifetime mortgage through an easy-to-use online platform
    • Early repayment charges may apply
    • Not all plans suit smaller properties

    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
    • Flexible drawdown options
    • Tailored underwriting
    • Optional repayments
    • Enhanced lending products
    • Inheritance protection
    • Adviser fees
    • Legal costs
    • Possible arrangement fees
    • Flexible criteria
    • Strong drawdown options
    • Good voluntary repayment flexibility
    • Suitable for varied circumstances
    • Some products have higher rates
    • Charges vary between plans

    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
    • Optional monthly interest repayments
    • Drawdown plans available
    • Fixed rates for life
    • Downsizing protection
    • Adviser fees may apply
    • Legal fees
    • Possible valuation costs
    • Well-known lender
    • Flexible repayment structure
    • RIO products available
    • Strong adviser support
    • Rates may not always be lowest
    • Eligibility checks can be stricter

    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
    • Drawdown and lump sum plans
    • Inheritance guarantees available
    • Voluntary repayments
    • Fixed lifetime rates
    • Adviser fees
    • Legal fees
    • Possible valuation costs
    • Good product flexibility
    • Inheritance protection options
    • Established provider
    • Repayment flexibility available
    • Early repayment charges possible
    • Higher borrowing can increase rates

    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
    • Drawdown flexibility
    • Fixed rates for life
    • Partial repayments allowed
    • Downsizing protection
    • Adviser fees may apply
    • Legal fees
    • Possible valuation charges
    • Flexible plans
    • Competitive rates
    • Good customer support reputation
    • Partial repayments available
    • Rates vary by borrowing level
    • Some plans have early repayment penalties

    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
    • Enhanced borrowing options
    • Drawdown and lump sum plans
    • Fixed rates for life
    • Optional repayment flexibility
    • Adviser fees
    • Legal fees
    • Possible arrangement costs
    • Enhanced plans available
    • Suitable for complex cases requiring medical underwriting
    • Flexible product range
    • Drawdown options available
    • Rates can be higher
    • Early repayment charges may apply

    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:

    1. 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.
    2. 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.
    3. 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.
    4. Check whether the provider allows voluntary repayments. This can reduce the amount of compound interest building over time.
    5. Consider the effect on inheritance, benefits and future care plans.
    6. It is also important to consider alternatives. Look into downsizing, retirement interest-only mortgages, remortgaging or using savings.
    7. 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.

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    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.

    Equity release rates are influenced by wider market conditions, including the Bank of England base rate. When interest rates rise, lifetime mortgage rates typically increase too. Because interest is compounded, even small rate changes can significantly affect the total amount owed over time.

    Costs vary by lender, but common charges include advice fees, valuation fees, legal fees, and product arrangement fees. The highest long-term cost is the compounded interest, which grows each year unless you make optional repayments. Some plans also include early repayment charges, which are fees applied if you repay the loan earlier than the lender originally anticipated.

    Yes, applicants with poor or limited credit history may be able to get equity release. Because the loan is secured against your property and is repaid from the sale of your home, credit score plays a smaller role than in traditional borrowing. However, serious financial issues such as an IVA, bankruptcy or CCJs may affect eligibility or reduce the amount you can borrow.

    Most lifetime mortgage providers let homeowners access 20%–60% of their property value, depending mainly on age, property value, and sometimes health or lifestyle factors. Older applicants may qualify for higher release amounts because the expected loan term is shorter. A personalised quote or calculator will give the most accurate estimate for your home and circumstances.

    To 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 can help to use a broker or IFA who compares schemes across a wide range of providers.

    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, be sure to compare the cost of advice from brokers as this could also save you money.

    Ashley Shepherd

    Ashley Shepherd
    Over 30 years’ experience in financial services including retirement and later-life planning.

    Our equity release expert’s view
     
    I’ve reviewed this selection of FCA-regulated lifetime mortgage providers to help highlight the real differences in interest rates, product features, fees and flexibility options such as drawdown and voluntary repayments.
    While headline rates naturally attract attention, the true long-term cost is driven by compound interest, early repayment terms and how the borrowing structure performs over time.
    Protections such as the no-negative-equity guarantee and adherence to Equity Release Council standards are not optional extras in my view, they are fundamental safeguards.
    My strong opinion is that a disciplined, side-by-side comparison is essential before proceeding, as equity release should always be chosen on structure, suitability and long term impact rather than brand recognition or headline pricing alone.

    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.

    More information on equity release:

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    Canada Life Equity Release Review (2026)

    An impartial review of Canada Life Equity Release, explaining how its lifetime mortgages work, key features, costs, pros and cons, customer reputation, and how it compares with whole-of-market equity release advice.

    How equity release works

    Equity release criteria

    Are you eligible for equity release? We take you through the criteria you may need to meet to qualify for equity release. Try our calculator for a free quote.

    Costs, fees & charges

    Everything you need to know about the costs involved in arranging equity release. See a breakdown of equity release costs and find out how much you could get.

    How much can I get?

    How much equity can you release from your home? You can usually release between 29%-55%, depending on your circumstances. Use our calculator to see.

    Pros and cons of equity release

    What are the pros & cons of equity release? Alongside the benefits, there are some important ‘catches’ to consider before deciding if it's right for you.

    Equity release FAQs

    Find answers to some of the most important questions to ask about equity release with our helpful homeowners FAQ.

    Alternatives to equity release

    Take a look at these alternatives to equity release, including downsizing your home, remortgaging to release equity, retirement interest only mortgages and more.

    Compound interest explained

    Understand how compound interest works on an equity release and the options you have to reduce how much you have to pay on what you borrow.

    Did you find this information helpful?

    We work with

    Age Partnership

    We are members of

    Equity Release Council

    Part of the Over50choices group

    Over 50 Choices

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    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.

    If a link has an * by it, it means it is an affiliated link to an insurance company or broker that may result in a payment to the site. Should you use the equity release calculator, speak to an Age Partnership adviser and take out a plan out using their services, we receive a commission, however this will not affect the price you pay.

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    Simply Equity Release is a member of the Equity Release Council and part of the Over50choices Group who is regulated by the FCA (No.594280) for insurance products.

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