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lifetime mortgage

Best Lifetime Mortgage Rates 2019 and 2020

I’m sure you will agree that when it comes to a better understanding of what the best lifetime mortgage rates are in 2020 it can get confusing.   This is why we are here to help you.

The key topics in this guide will help explain it all to you in a very straightforward way.  In this guide you will find:

– The best mortgage rates and lifetime mortgage providers

– Where you can get financial advice

Some background to a lifetime mortgage

Equity release schemes are rapidly growing in prevalence in the UK and overseas – and with good reason.

Here is a short video that explains what equity release is.

As more and more people are unfortunately finding they have left it too late to prepare for the cost of long-term care, equity release is understandably becoming an increasingly popular option.  The two most popular options are lifetime mortgages or home reversion plans.

These schemes provide instant access to a loan that can be used to pay for long-term care in the short or future term. But as the needs of customers continue to diversify, new products emerge on the market to meet them.

Many lifetime mortgages offer a ‘negative equity guarantee’, ensuring that you won’t have to pay back more than you received when you eventually come to sell your property. Any provider that wants to be a part of the equity release council has to offer a negative equity guarantee.  

In addition, the mortgage is not repayable until you either die or move. 

For more information on how equity release works, please refer to our comprehensive guide here.

Here is a short video on how Lifetime Mortgages work.

Best lifetime mortgage interest rates 2020 

Equity Release ProviderRateKey Feature
Legal General 2.9%Cashback & free valuation
Pure Retirement2.99%10%pa Partial Repayment Option
More 2 Life3%Downsizing Repayment Charge Exemption
Legal & General 3%Cashback & free valuation
Aviva3.4%3-year No Early Repayment Charge

The interest rate that you will get will typically depend on the amount of money or loan to value (LTV) you are taking.

However, typically you would see rates starting around 3% going up to about 7%.  As you can see, the range of deals that you can get is very wide.  That is why we strongly recommend that you speak to a specialist to help you find the most competitive rate.

All the providers below are also regulated by the financial conduct authority

Here are the best interest rates available in 2020.  However, the rates can change daily so you should ring the number below for the most up to date information.

1 – The best lifetime mortgage rate

Provider – Legal & General – Authorised and regulated by the financial conduct authority

Annual interest rate (AER) – 2.9% – A lower rate may be available 

The amount of lump sum you can borrow – £20,000 to £500,000 as a cash payment.  

Offers available with this deal

  • Cashback
  • Free Valuation
  • Free Application
  • Legal Fees Contribution
  • Inheritance Protection Guarantee
  • 3-year No Early Repayment Charge

What to do next if you want to know more

Do it onlineClick here to use the calculator to see how much this deal will cost you.

Speak to someone – Call 0800 953 3792 to speak to specialist and see if you are entitled to a lower mortgage interest rate.

disadvantages of equity release

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2nd best rate

Provider – Pure Retirement – Authorised and regulated by the financial conduct authority

Annual interest rate (AER) – 2.99% – A lower mortgage rate may be available

The amount of lump sum you can borrow– £250,000 to £2,000,000 as a cash lump sum payment.  

Offers available with this deal

  • Free Valuation
  • Free Application
  • 10%pa Partial Repayment Option
  • Fixed Early Repayment Charges
  • Downsizing Repayment Charge Exemption

What to do next if you want to know more

Do it onlineClick here to use the calculator to see how much this deal will cost you.

Speak to someone – Call 0800 953 3792  to speak to a specialist and see if you are entitled to a lower mortgage interest rate.

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3rd best rate

Provider – More 2 Life

Annual rate (AER) – 3%

The amount of lump sum you can borrow – £250,000 to £2,000,000 as a cash payment.  

Offers available with this deal

  • Free Valuation
  • Free Application
  • 10%pa Partial Repayments Option
  • Fixed Early Repayment Charges
  • Downsizing Repayment Charge Exemption

What to do next if you want to know more

Do it onlineClick here to use the calculator to see how much this deal will cost you.

Speak to someone – Call 0800 953 3792  to speak to a specialist and see if you are entitled to a lower mortgage interest rate.

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4th best rate

Provider – Legal & General  

Annual interest rate (AER) – 3% – A lower mortgage rate may be available 

Amount you can borrow – £20,000 to £500,000 as a money payment.  

Offers available with this deal

  • Cashback
  • Free Valuation
  • Free Application
  • Legal Fees Contribution
  • Inheritance Protection Guarantee
  • 3-year No Early Repayment Charge
  • Can be used for long-term care costs

What to do next if you want to know more

Do it onlineClick here to use the calculator to see how much this deal will cost you.

Speak to someone – Call 0800 953 3792  to speak to a financial adviser and see if you are entitled to a lower equity release interest rate.

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5th best rate

Provider – Aviva  

Annual rate (AER) – 3.40% – A lower mortgage rate may be available.

The amount of lump sum you can borrow – £10,000 to £750,000 as a cash payment.  

Offers available with this deal

  • Cashback
  • Free Valuation
  • Reduced Application Fee is available
  • Inheritance Guarantee
  • 10%pa Voluntary Partial Repayments
  • 3-year No Early Repayment Charge**
  • Bespoke Interest Rates available

What to do next if you want to know more

Do it onlineClick here to use the calculator to see how much this deal will cost you.

Speak to someone – Call 0800 953 3792  to speak to a financial advisor and see if you are entitled to a lower equity release interest rate.

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How much can you borrow from Lifetime Mortgages?

You can click the calculator below to get an instant idea as to how much money you can get tax free from the value of your home.  Give it a go as it can often be more than you think!

Speak to a specialist about lifetime mortgages

To help our site users you can have a free consultation with a specialist to help you better understand how it works and what your options might be.

To do so you can book an appointment directly using the calendar below.  Just pick your preferred time and date and someone will call you to help.

 


How do lifetime mortgages work?

Here is a useful video that explains how lifetime mortgages work.

The most popular type of equity release scheme is known as a lifetime mortgage.  This is the most popular type of scheme, as it’s the most flexible and versatile option.

It’s easiest to think of a mortgage as a kind of long-term loan, secured against the value of your property.

The difference with this compared with regular mortgages or loans is that although interest is added by the (usually on a yearly basis), no repayments are due until the termination of the contract – which usually occurs upon death or the sale of the property.

As with all investment options, there are benefits and drawbacks to consider if you are thinking about approaching lifetime mortgage providers. 

 

Here is a video on the disadvantages of a lifetime mortgage.

Lifetime Mortgage Providers

The market for lifetime mortgages is not as large as your typical mortgage market.  This is because there is much more demand for conventional mortgages which means that the number of providers for lifetime mortgages is much smaller.   However, the larger providers in the market are:

  • Legal & General
  • Aviva
  • Hodge lifetime
  • One Family
  • More 2 Life

Because the market for these type of mortgages is much smaller, we can not stress enough the importance of speaking to an advisor.  You can either leave your contact details below or ring 0800 953 3792 and speak to a specialist that can help you understand the best available options for you.

lifetime mortgage providers

Lifetime mortgages advice – where can I get it?

It is essential that you use a specialist to secure an equity release scheme.   They will ensure that your interests are always protected and also ensure that you don’t waste thousands of pounds on a bad deal.

There are two options for you to consider when looking for financial advice.

Option 1 – Find an advisor in our directory of equity release specialists

We have created a directory of advisors that specialise in helping people find the right provider.  The directory has advisors listed from all over the country.   You can access the equity release advisor directory here.

Option 2 – Let us, the UK Care Guide, find an equity release mortgage advisor for you

If you do not feel confident in choosing an advisor you can speak to us on  0800 953 3792 in conjunction with Key Advice.  We can guide you through the complexity of choosing the right product.  

Martin Lewis lifetime mortgages

Here is a video from Martin Lewis on ‘This Morning’ explaining why you should speak to a specialist before taking on a plan. In the video, he says that Equity release, or lifetime mortgages, are when you get a mortgage on the house that will be paid of when you die. So you are not repaying it month of month”

 

martin lewis lifetime mortgages

Book an appointment with a mortgage specialist

To help our site users, you can have a free consultation with an equity release specialist to help you better understand how it works and what your options might be.

To do so, you can book an appointment directly using the calendar below.  Just pick your preferred time and date and someone will call you to help.

 

Summary of this page

1 - What is an equity release calculator

An equity release calculator will tell you how much money you could receive as a tax-free lump sum. The amount is usually dependant on your age and the value of your house.

2 - What sort of interest rates are applied to equity release mortgages?

Interest rates vary and can be anywhere between 3% and 7%. You can call us on 0800 953 3792 and get information on the latest deals, as they can change every day.

3 - Is the money from equity release tax-free?

Yes, the money you receive is tax-free. However, if you are in receipt of means-tested benefits then these can be impacted. You can contact us on 0800 953 3792 and see if you would be impacted.

4 - What can you use the money from equity release for?

The money from equity release can be used for a variety of things. Typically it is used to pay for long term care, modify your home to help with later life living or even to treat yourself to a holiday of a lifetime and help your family financially.

5 - What are the different types of equity release mortgage?

The most popular type is called a lifetime mortgage. If you are over 65 then a home reversion plan might be a better option, Get in touch with us and we will be able to tell you what we think would be best for you.

With recent reduction in interest rates there are some really good lifetime mortgage deals available.  The cheapest that we have seen in over 10 years!  Contact us for free, in conjunction with Key Advice, to see what you could get.

You can speak to us on the number below to find out today's available mortgage rates.

0800 953 3792

Use our lifetime mortgage calculator and see how much money you could receive.

Book an appointment for a lifetime mortgage specialist to call you when it's conveniant.

All equity release advice is provided in conjunction with Key Partnerships.

Choose how you want to engage with Key below

Reductions in interest rates mean that there are some great lifetime mortgage deals available.  See what you can get.

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