Compare Equity Release Mortgages

TheMoneyDaily.com has teamed up with the equity release experts at MCB Financial Services to you offer you a free, impartial comparison and advice service for Lifetime Mortgages. Compare some of the top lifetime mortgage deals available below and click on “send enquiry” for a no obligation chat with one of MCB’s expert advisers. We have access to hundreds of mortgages from all major UK equity release lenders. Send us an enquiry or call us on 01603 964 921 for free advice. Our qualified advisers will make sure you are eligible for any deal before you apply and will provide expert support through the entire process. MCB Financial Services Ltd are only able to advise on Lifetime Mortgages and not Home Reversion Schemes. A lifetime mortgage will be secured against your home.



Provider Details

Hodge Lifetime Mortgage

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  • Interest Rate (AER)3.85%
  • Maximum LTV50%
  • Lump Sum Available£20,000 - £500,000
Note: Other lifetime mortgages with a higher LTV are available upon request. 01603 964 921


Legal & General Lifetime Mortgage

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  • Interest Rate (AER)3.87%
  • Maximum LTV39.5%
  • Lump Sum Available£250,000+
Note: Other lifetime mortgages with a higher LTV are available upon request. 01603 964 921


LV= Lifetime Mortgage

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  • Interest Rate (AER)3.9%
  • Maximum LTV45%
  • Lump Sum Available£10,000+
Note: Other lifetime mortgages with a higher LTV are available upon request. 01603 964 921


OneFamily Lifetime Mortgage

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  • Interest Rate (AER)3.97%
  • Maximum LTV31%
  • Lump Sum Available£10,000+
Note: Other lifetime mortgages with a higher LTV are available upon request. 01603 964 921


Retirement Advantage Lifetime Mortgage

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  • Interest Rate (AER)4.09%
  • Maximum LTV35%
  • Lump Sum Available£10,000+
Note: Other lifetime mortgages with a higher LTV are available upon request. 01603 964 921


More2Life Lifetime Mortgage

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  • Interest Rate (AER)4.03%
  • Maximum LTV55%
  • Lump Sum Available£15,000+
Note: Other lifetime mortgages with a higher LTV are available upon request. 01603 964 921


Aviva Lifetime Mortgage

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  • Interest Rate (AER)4.30%
  • Maximum LTV45%
  • Lump Sum Available£15,000+
Note: Other lifetime mortgages with a higher LTV are available upon request. 01603 964 921


Pure Retirement Lifetime Mortgage

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  • Interest Rate (AER)4.03%
  • Maximum LTV50%
  • Lump Sum Available£10,000+
Note: Other lifetime mortgages with a higher LTV are available upon request. 01603 964 921


Just Retirement Lifetime Mortgage

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  • Interest Rate (AER)4.95%
  • Maximum LTV35%
  • Lump Sum Available£10,000+
Note: Other lifetime mortgages with a higher LTV are available upon request. 01603 964 921


A Guide To Home Equity Release

An equity release mortgage allows older people to release some of the cash/equity that they have built up in their property without having to move home. These type of products are only available to UK homeowners between the ages of 55 and 95. The money released from the value of your home can be accessed as a lump sum or as regular monthly payments. You can spend the money in any way you like although most people use these mortgages as a way of funding their retirement. There is no need to move home – you are entitled to live in your home for the rest of your life or until such time as you decide to move.

 

Equity release is a complex product and there are pro’s and con’s to this type of borrowing. Equity release mortgages are regulated by the Financial Conduct Authority and we advice consumers to look for lenders who are members of the Equity Release Council to ensure you are being sold the right product for your individual circumstances.

 

What Equity Release Options Are Available?

There are 2 main types of equity release mortgages – Lifetime Mortgages and Home Reversion Schemes.

 

A Lifetime Mortgage allows you to take out a loan, secured against the value of your home. You will receive the value of the loan as a lump sum (tax free). The most common type of Lifetime Mortgage is the “roll up mortgage scheme” which means the value of the loan plus the interest that has accrued is repaid when the house is sold after your death or when you move into an elderly care home on a permanent basis (cheery I know!). It is also possible to take out an “interest only” Lifetime Mortgage whereby you will pay some or all of the interest payments on a monthly basis. It is also important to know that if you take our a Lifetime Mortgage on a jointly owned property both you and your partner have the right to live in the property for the rest of your lives. The Lifetime Mortgage is no repaid until the last remaining person dies or move into long-term care.

 

A Home Reversion Scheme allows you to take out some or all of the value of your home while keeping the right to live there, rent free, for the rest of your life. The lender will buy a percentage of your home for a set price. This percentage will not change unless you decide to sell more of your home to them. On the plus side this means you will know how much of your property you still own and will be able to leave to next of kin. The downside is that the percentage owned by the lender remains fixed even if the property increases in value.

 

Both types of Equity Release mortgages are sometimes available with a “Negative Equity Guarantee” which is highly recommended. This type of guarantee ensures that even if the value of your home has fallen and no longer covers the amount owed to the lender, your next of kin will never owe more than the value of the property when it is sold. In this situation, the lender would have to right off any outstanding amount owed by the borrower.

 

The Rules

Apart from the age restrictions (equity release mortgages are only available for people between 55 and 95) there are a few other restrictions you should know about.

  • The maximum amount you can borrow with a LifeTime mortgage is usually around 60% of the value of your home.
  • The amount a lender will allow you to borrow will be based on a number of factors including your age, health and the value of your home.
  • Some lenders are willing to offer larger amounts to people who they deem to be “unhealthy” – including those with health conditions and smokers.
  • Most lenders will not offer any sort of equity release scheme for homes worth less than £70,000.
  • If you have any outstanding mortgage on your property you will need to pay it off, either before you take out the equity release product or using some of the money the lender has provided you with.
  • Expect an 8-12 week period from starting the application process to receiving the funds in your bank account.
  • Home Reversion Schemes are only available to people from the age of 60.



Disclaimer: TheMoneyDaily’s service is not intended to be, nor should it be construed as financial advice. We help our readers make informed decisions and can introduce you to comparison services and provide impartial information and guides. Where appropriate, we may introduce FCA authorised partners who can provide services relating to financial products.