Lifetime Mortgage Rates

If you’re considering the possibility of using a lifetime mortgage to release equity from your home, you’re probably wondering what interest rates you should expect to pay.

This guide covers everything you need to know about lifetime mortgage interest rates. We’ll explain how the rates are structured, where to compare the best deals, and why expert advice can help you secure the cheapest rates, no matter your circumstances.

What is the typical interest rate for a lifetime mortgage?

The rates table in the section below indicates the interest rates available for a lifetime mortgage based on a standard applicant in a typical property.

Before looking at that, it’s important to remember that plenty of factors could impact the rates you’re able to access.

Some critical areas of importance that will determine the interest rate you’re offered for a lifetime mortgage include:

• Your circumstances (such as your age and credit history).
• How much do you want to borrow, and what is your loan-to-value (LTV) ratio?
• If you want to receive a lump sum or take regular drawdown payments.
• Do you want the ability to make additional interest payments when you can afford to?
• The type of property you have (whether it’s a non-standard construction or has any distinctive features).
• Selecting to have negative equity or inheritance protection.
• Your current finances and the amount of equity you own in the property.
• Whether you’re looking for a fixed-rate or variable-tracker lifetime mortgage deal.

The best Lifetime Mortgage rates available currently

The table below illustrates some of the best interest-rate deals currently available for lifetime mortgages.

Please note that the above rates are purely for example purposes. They were accurate at the time of writing but are subject to change at the provider’s discretion. Speaking to a mortgage broker is the best way to find the most up-to-date deals.

How a broker can help you get the best lifetime mortgage rates

When you’re looking to release equity using a lifetime mortgage product, securing the cheapest rates will contrast the total amount you pay for the loan as the years roll on. The best way to ensure you’re on the lowest possible rate is with the help of an expert mortgage advisor.

Some specific mortgage brokers focus on lifetime mortgages and have plenty of experience securing cheap interest rates for clients. These specialist mortgage advisors can do this because they have a deep knowledge of the market and existing relationships with lifetime mortgage lenders, allowing them to access deals and rates unavailable to the public.

If you’d like to be introduced to an expert mortgage advisor who can help you lock in the lowest rates for your lifetime mortgage, just make an enquiry. We’ll introduce you to a skilled broker.

Rates for different types of lifetime mortgages

It’s also worth noting that your arrangement to release equity with a lifetime mortgage can impact the rates on offer. For example, whether you opt to set up one of the following ways of borrowing can lead to different lifetime mortgage rates when you’re comparing deals:

• Fixed-rate or variable rate: Interest rates can be higher with fixed rates (not always), but you get more stability compared to a tracker.
• Interest-only lifetime mortgage or retirement interest-only (RIO): allows you to pay off the interest as you go, which may incur higher rates because lenders make less money from these deals.
• Drawdown or flexible: If you want more flexibility in how you take your money, you may end up paying a higher interest rate with some lenders.
• Enhanced: Allows access to more money for those with medical conditions that could reduce their lifespan. However, a higher rate may be used if the loan’s lifetime is shorter.
• Protected: Guarantees a certain percentage will be left for an inheritance, but this can reduce the amount you borrow or come with higher interest.

Interest-only lifetime mortgage rates

One of the main alternatives to a fixed-rate lifetime mortgage is an interest-only option (sometimes marketed as a retirement interest-only RIO product). Instead of letting the interest roll up and accrue over the years, you can pay it off as you go. This can leave you owing a much smaller balance when you die or move into care.

The table below shows what the best interest rates are at the moment for these types of mortgages.

The above rates are purely for example purposes and were accurate at the time of writing, but they are subject to change at the provider’s discretion. The best way to find the most up-to-date deals is to speak to a mortgage broker.

Get matched with a lifetime mortgage specialist

When you want to get yourself set up with a competitive lifetime mortgage, finding the best deals and cheapest interest rates can be tricky without guidance from an expert mortgage broker.

We offer a broker-matching service. We’ll quickly assess your equity release needs and introduce you to an experienced lifetime mortgage broker.

Just call 0330 818 7026 or make an enquiry. We’ll set up a free, no-obligation chat between you and a skilled broker who will find you the lowest lifetime mortgage rates available.