Lifetime Mortgage Providers & Lenders

Are You Looking for the Best Lifetime Mortgage Provider?
Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui
Are You Looking for the Top Lifetime Mortgage Deal? Do You Want the Best & Most Competitive Rates? Discover the Best Lifetime Mortgage Deals From the Top Lifetime Mortgages Providers….

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Have you settled on a Lifetime Mortgage but have no idea which lifetime mortgage provider to opt for? You don’t want to regret this lifelong decision!

With so many different mortgage lenders on the market, it is not easy to know who’s the best in the business. Luckily, we’re here to be your guide.

In this article you’ll learn:

  • What you need to know about lifetime mortgage providers
  • How did we choose and review the top lifetime mortgage providers?
  • Who are the top 13 lifetime mortgage providers in the UK?
  • Who is the best provider for lifetime mortgages?
  • How to find the best lifetime mortgage provider?
  • Which banks & building societies offer lifetime mortgages?
  • What features do the best lifetime mortgage providers offer?
  • Who offers interest-only lifetime mortgages?
  • Should you use a high street lender or a specialist for a lifetime mortgage?
  • What does Martin Lewis say about lifetime mortgages?
  • What are the SAGA lifetime mortgage rates?
  • What’s the best Aviva lifetime mortgage & what are the Aviva lifetime mortgage rates?
  • What’s the best Nationwide lifetime mortgage & what are the Nationwide lifetime mortgage rates?
  • What’s the best Legal & General lifetime mortgage?

Our team regularly reviews all regulated lifetime mortgage plans to discover who’s offering the best products. Hence, we’re bringing you the most up-to-date information.

Are you wondering who stands out in 2022?

Find out now!

TABLE OF CONTENTS

What You Need to Know About Lifetime Mortgage Providers 

Lifetime mortgage providers are financial entities that are regulated to offer later-life funding.

In the UK, lifetime mortgage providers are regulated by the Financial Conduct Authority (FCA), which ensures that customers aren’t taken advantage of.

There are various lifetime mortgage providers for you to consider before making a final decision. 

What’s a Lifetime Mortgage?

A lifetime mortgage is when you borrow cash secured against the value of your house, if it’s your primary residence, while still maintaining ownership.

The property is sold when the last borrower passes away or goes into long-term care, and the money from the sale is used to pay off the loan.

There are various plan types of lifetime mortgages available, including:

  • Roll-up lifetime mortgages
  • Drawdown lifetime mortgages
  • Flexible lifetime mortgages
  • Enhanced lifetime mortgages

How to Find the Best Lifetime Mortgage Provider?

To find the best lifetime mortgage provider, we recommend consulting a whole-of-market financial advisor.

Ideally, your chosen adviser should specialise in lifetime mortgages to help you find the best provider based on your needs and circumstances.

Who Are the Top 13 Lifetime Mortgage Providers in the UK?

The top 13 lifetime mortgage providers in the UK are:

Aviva 

  • Aviva equity release is the country’s leading insurer. Both flexible withdrawal and partial payment plans are accessible.
  • You also have the option of Inheritance Protection, which allows you to safeguard a percentage of your estate for your heirs.
  • Aviva offers lifetime mortgages that come with Downsizing Protection if you downsize to a property that does not meet the lending criteria.

Hodge Lifetime

  • Hodge plans come with Downsizing Protection, so you won’t have to pay the penalty if you repay your loan early if you sell your home and relocate.
  • All Hodge lifetime mortgages come with a Flexible Repayment Option. Without incurring ERCs, up to 10% of the original loan can be repaid each year.
  • Interest rates for drawdown and flexible lump sum plans are between 4% and 4.5%. There is a minimum cash drawdown of £1000 for each withdrawal on flexible lifetime mortgage loans.
  • The standard loan-to-value (LTV)4 that you can expect is between 15% and 48%.

More2Life

  • More2Life offers the most plan options out of all these lenders. They have 5 categories, namely Prime, Maximum, Tailored, Capital, and Flexi.
  • The LTV that you can get will range from 5% to 56%.
  • The feathers you have access to will depend on the plan that you select. These can include Downsizing Protection, Repayment Charge Exemption, Inheritance Protection, Partial Repayments, and even cash back.

Retirement Bridge

  • Retirement Bridge is renowned for its home reversion plans.
  • Allows you to sell between 25 – 100% of your property for a cash lump sum.

Retirement Plus

  • Retirement Plus Property Plan lets you sell all or part of your property at less than its market value in return for a tax-free lump sum or a regular income.
  • Strictly for those aged 65 and above.
  • As a long-standing member of the Equity Release Council.

Liverpool Victoria (LV=)

  • With LV=, you can unlock a minimum of £10,000 in equity.
  • With LV=’s Lump Sum Lifetime Mortgages, there’s no guarantee that you can borrow for a second time.
  • A maximum of 3x the initial or maximum LTV ( whichever is lower ) is permitted. You can use this cash reserve for 15 years. Each withdrawal must be £2,000 or more.
  • You can get 2 free revaluations with the Flexible plan, allowing you to unlock more equity release if your property grows in value.

Canada Life

  • When you apply for a lifetime mortgage with Canada Life, you may include a cash reserve facility.
  • They have fixed early repayment charges for the first 8 years.
  • Canada Life also has the option of an Inheritance Guarantee attached to all their plans.
  • Interest Select mortgages let you pay a percentage of the interest for 5 years and the overall mortgage period, with terms ranging from 50% to 100% of the interest each month. After 5 years, Downsizing Protection is available and an ERC Waiver during the first 3 years.
  • You get a free valuation with Canada Life’s equity release mortgages.

Before You Keep Reading….

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Legal & General

  • Legal & General offers 2 main types of lifetime mortgage schemes: These are Flexible Lifetime Mortgages and Optional Payment Lifetime Mortgages.
  • Both of these plans include the option to borrow more in the future if you do not take the maximum amount at first. However, later withdrawals may have varied interest rates.
  • Cashback and Inheritance Protection are both offered as a part of plans by Legal & General.
  • Income lifetime mortgages are also available. This is where you receive a lump sum and tax-free monthly income for a specific length of time, usually 10, 15, 20, or 25 years.

Just

  • A lifetime mortgage with Just allows you to borrow up to 90% of the property value, with a drawdown cash facility.
  • You have the option of paying a minimum of £25 in monthly interest repayments. The maximum is the full monthly interest amount. This will stop or slow down the interest from compounding.
  • You can borrow a minimum of £10,000 in equity or £30,000 if you opt for monthly repayments.

Nationwide Building Society

  • Nationwide’s equity release mortgages come with no product or valuation charges.
  • You will receive £1000 cashback when you complete the application process, which can help you pay for advice fees.
  • You can repay up to 10% of the loan annually, without incurring early repayment penalties.

Responsible Lending

  • Responsible Lending gives you the option of a drawdown or lump sum lifetime mortgage.
  • Interest rates are fixed for life and there’s no interest repayments.

Pure Retirement

  • Pure Retirement has 2 types of lifetime mortgages called Pure Max Drawdown and Pure Sovereign.
  • The Pure Max Drawdown versions have greater LTVs and cash advantages. The maximum LTV of Pure Sovereign plans is lower, as well as the interest rates.
  • Pure Retirement sometimes covers your arrangement and legal fees upon completing the application. However, this isn’t always the case.

OneFamily

  • OneFamily’s lifetime mortgages come with the option of fixed or variable interest rates.
  • Their products also come with Standard LTV and Super LTV fixed-rate services. Super LTV products are for persons aged 70 and above. They enable you to borrow more money (45-58% loan-to-value) but at a costlier interest rate.
  • You’ll have Downsizing Protection after 5 years of your loan.

How Did We Choose and Review the Top Lifetime Mortgage Providers? 

We chose and reviewed the top lifetime mortgage providers based on their regulation and compliance with industry standards set by the FCA.

Their experience within the industry and customer feedback were also taken into consideration.

Which Banks & Building Societies Offer Lifetime Mortgages?

The following banks and building societies offer lifetime mortgages:

Scottish Widows

  • Scottish Widows gives you the option of a drawdown facility that’s available for the first 7 years of your plan.
  • There’s downsizing and inheritance protection in place.
  • There’s the option of voluntary repayments without being concerned about early repayment charges.

Halifax

  • Halifax offers lifetime mortgages through Scottish Widows.
  • Allows for a joint lifetime mortgage application.

Yorkshire Building Society

  • Yorkshire Building Society offers mortgages, savings and life planning services.

Interest-only Lifetime Mortgage Providers

Not all equity release providers offer interest-only lifetime mortgages. However, the following do:

  • Legal & General – Their interest-only lifetime mortgage plans come with a free valuation, zero application fees, and a cashback feature.
  • LV= – They also offer a free valuation and no application fees on their plans.
  • One Family – Your plan will come with variable interest rates and a free valuation.
  • Canada Life – Once again, you can get a plan with a free valuation, no application fee, and cashback.
  • Just. – Your plan will come with a 3-year no early repayment charge guarantee.
  • Pure Retirement – You can get an interest-only lifetime mortgage with a downsizing repayment charge exemption.
  • More2Life – Their Prime Max plan comes with a guaranteed inheritance feature. 

Common Questions

How Do I Apply With a Lifetime Mortgage Provider?

Should Borrowers Use a High Street Lender or a Specialist for a Lifetime Mortgage?

Who Offers the Best Lifetime Mortgages?

What are the SAGA lifetime mortgage rates?

How to Find the Best Provider of Lifetime Mortgages?

What Features Do the Best Lifetime Mortgage Providers Offer?

What Banks Do Lifetime Mortgages?

What Does Martin Lewis Say About Lifetime Mortgages?

What’s the Interest Rate for a Lifetime Mortgage?

Can You Buy a Property With a Flexible Lifetime Mortgage?

In Conclusion

A financial adviser will chat to you about the impacts of a lifetime mortgage on your tax position, means-tested benefits, and pension.

Furthermore, the adviser will help you select the best lifetime mortgage providers to suit your circumstances.

Before You Go…

Use the FREE Calculator Below 👇

 

Equity Release Calculator

Value of Your Home?

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Editorial Note: This content has been independently collected by the SovereignBoss team and is offered on a non-advised basis. SovereignBoss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.