Barclays Equity Release & Lifetime Mortgage Review in 2024

Do You Want to Secure Your Retirement With Products From Barclays? Discover Your Options and Find Out If Barclays Caters to the Later-Life Lending Market. Keep Reading to Get the Answers You Need…
  • Last Updated: 01 Feb 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui

Key Takeaways

  • Barclays equity release is essentially a lifetime mortgage that allows homeowners aged 55 or over to unlock the equity tied up in their property without having to sell it.
  • Determining if they are a good retirement option depends largely on your personal circumstances, including your property's value, your age, and your financial goals.
  • To apply, you would need to get in touch with the bank directly or through an independent financial adviser who can guide you through the application process.
  • Some key advantages include the ability to access tax-free cash tied up in your property, while downsides may include potential inheritance implications and the accrual of interest over time.
  • Interest rates can vary and are typically fixed for the life of the loan, but the exact rate will depend on your personal circumstances and the prevailing market conditions.

If you are financial planning for your retirement, you may have wondered if it would be wise to obtain Barclays equity release.

It would be no wonder, since Barclays is one of the largest banking and financial services institutions in the UK, and it posted it's strongest quarterly profit since 2011 in Q1 of 2023.1

In This Article, You Will Discover:

    As experts in financial products for retirees, Every Investor’s editorial team created this article to help you assess whether Barclays’ offerings may meet your needs.

    We have studied Barclays’ products and services and put our findings through a rigorous process of fact-checking.

    Our articles are also regularly updated.

    Find out whether Barclays is one of the best equity release companies in the UK:

    NOTEEvery Investor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of Every Investor only and may not reflect the views or opinions of Barclays. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Barclays.

    What Is Barclays?

    Barclays Plc is a British multinational corporate bank, investment bank, and financial services company, with a history tracing back over three centuries. 

    Founded in 1690, Barclays is an established and trusted name in the banking industry.

    According to it's webpage, the bank endeavours to put it's customers and employees at the forefront of its decision-making process by maintaining the core values of respect, integrity, service, excellence, and stewardship.2

    What Are Equity Release Loans In The UK?

    Equity release offers a financial strategy for homeowners above 55 to capitalize on their home's equity.

    It's a means to turn property value into accessible capital, without parting with the property.

    This financial plan differs in its repayment scheme; the loan, including interest, is settled at the property's future sale, often coinciding with the homeowner's end of life or long-term care entry.

    Read More: What Is An Equity Release Loan?

    What Is the Process for Barclays Equity Release?

    The process for Barclays Equity Release begins with an initial consultation where we assess your circumstances and discuss the best equity release products for your needs.

    As qualified and experienced advisors, we'll guide you through the range of available options including lifetime mortgages and home reversion plans.

    After determining the most suitable equity release scheme for you, we help you complete the application process.

    Barclays Equity Release also involves a property valuation and legal work, which we coordinate efficiently for you.

    In our experience, the entire process can be completed within 8-12 weeks, helping you unlock the equity in your home sooner.

    Does Barclays Offer Equity Release or Lifetime Mortgages?

    No, Barclays does not offer equity release options directly.

    It does, however, offer what it calls “Home Equity Loans”, which are loans that allow the borrower to offer up the available equity in their home as security. 3

    Does Barclays Cater to the Retirement Market?

    Yes, Barclays caters to the retirement market and is well-established as a provider in the sector, even though the bank does not offer equity release directly.

    Barclays caters to the retirement market in a variety of ways, offering financial services to those planning for retirement or already in their retirement years.

    Examples of the services offered are:

    • Pensions
    • Savings accounts
    • Investment accounts
    • ISAs

    It may be interesting to note that the number of in-person visits customers are making to branches has declined drastically, such that in April 2023, Barclays confirmed plans to shut 73 branches in 2023 alone.4

    This could potentially make it harder for customers in the retirement market to obtain Barclays’ products and services since clients over 65 often prefer in-person visits or consultations to deal with financial matters such as retirement planning.5

    Equity Release Alternatives Offered by Barclays

    Equity release alternatives offered by Barclays include a range of loans and mortgages.

    These products include interest-only mortgages and unsecured loans (e.g., personal loans, overdrafts, and credit cards7) that may allow individuals to tap into the value of their property or access finance without having to sell their homes.6

    However:

    Securing an interest-only mortgage in retirement means you will need to prove your ability to cover monthly interest payments as well as the full mortgage from other sources of retirement income by the time the mortgage matures.

    If you default on interest payments with an interest-only mortgage, it can result in the repossession of your home.

    All equity release alternatives have their own set of eligibility criteria, so before applying for any product or service, you should take note of the criteria by checking Barclays’ website.

    Retirement Planning Options

    Barclays has several retirement planning options. 

    Beyond it's savings accounts and personal pensions where you can benefit from tax relief on your contributions, you can also invest with Barclays.

    Depending on your individual circumstances, there is one of three ways in which you can invest with Barclays:

    • Experts can help you manage your investments: With this option, you can secure a personal investment plan that suits your particular circumstances.8
    • You can choose from one of five ready-made investment funds: Each comes with varying levels of risk, and you can decide how much to invest.9
    • You can pick and manage your own investments: With this option, you are in command, and can open an individual savings account (ISA), investment account, or self-invested personal pension (SIPP).10

    Barclays also employs wealth management teams who assess your circumstances and suggest ways for you to reach your retirement goals by making use of the bank’s products and services.11

    Pensions and Savings Accounts

    Barclays offers pensions and savings accounts.

    One option is a Self-Invested Personal Pension (SIPP), offered by AJ Bell, suitable for individuals comfortable with making investment decisions.12 

    There are also five different savings accounts to choose from. 

    The type of savings account you select depends on how much you plan on saving in the account in total, and the effective annual interest rate (AER) you will earn on your savings differs depending on the account you choose.13

    ISAs

    Barclays offers two types of Individual Savings Accounts (ISAs): Investment ISAs and Cash ISAs.14

    With an ISA, you can save or invest money while being tax-efficient, because you are not liable for income tax, dividend tax, or capital gains tax on the returns you make.

    Cash ISA

    A Cash ISA is a savings account only dealing in cash and earning interest at either a fixed or variable rate.

    Barclays has seven cash ISAs to choose from, with different fixed AERs and varying restrictions placed on how you can access your money.15

    Investment ISA

    Sometimes called a “Stocks and Shares ISA”, this account lets you deal in a range of assets from cash, investment funds, shares, gilts, bonds, exchange-traded funds, exchange-traded commodities, and investment trusts.

    Investment ISAs are riskier since they are not only subject to growth but also to a potential decline in economic conditions.16

    In 2022, Barclays was awarded “Best Stocks and Shares ISA Provider” at the Online Money Awards.17

    Interest Rates on Equity Release Alternatives

    The interest rates on equity release alternatives offered by Barclays vary based on several factors, as is the case with equity release products available elsewhere.

    It is crucial to discuss any product or service you may want to make use of with Barclays or a financial advisor to understand the charges you will incur and decide what would be most suitable for your circumstances.

    Mortgage Rates

    Mortgage rates across Barclays’ range of products currently vary from 5.20% to 6.30%* annual percentage rate of charge (APRC).18

    Personal Loans

    You can use Barclays’ personal loan calculator to obtain an indication of the annual percentage rate (APR) you can achieve on the amount you wish to borrow, depending on the loan term you require.

    However, this is subject to change based on your circumstances.

    Overdrafts

    Overdrafts on Barclays bank accounts are currently charged at 35% APR representative (variable).19 

    Barclays also has an overdraft calculator to help you work out the cost of an overdraft lasting up to 31 days.

    Credit Cards

    Barclays offers various types of credit cards to serve different purposes.20

    These include:

    • Rewards credit cards where you can earn cashback and other kinds of rewards, but get charged at 77.6% APR representative (variable).
    • Purchase offer credit cards where you can make purchases without paying interest on the balance for a predetermined period, and get charged at 25.9% APR representative (variable).
    • Credit building credit cards that assist you in improving your credit score or let you build one from scratch at 33.9% APR representative (variable).
    • Balance transfer credit cards help you consolidate credit card debt in one account and are charged at 23.9% APR representative (variable).21

    Disclaimer: All rates listed above were current at the time of publication. We regularly update our articles to provide readers with accurate information, but rates may have changed since our last update.

    Barclays’ Commitment to Responsible Lending and Customer Service

    Barclays’ commitment to responsible lending and customer service underlines it's approach to responsible lending and extends to all it's products and services.

    The bank has stringent processes in place to ensure it lends responsibly and treats customers fairly, as is evidenced by it's adherence to the Standards of Lending Practice as set by the Lending Standards Board in the UK.22

    Barclays’ Financial Stability, Customer Reviews and Ratings

    Barclays’ financial stability and customer reviews and ratings demonstrate it's standing as a stalwart of the UK banking industry. 

    The fact that Barclays has been in business for over three centuries is a testament to its financial stability even in times of economic turmoil.

    The bank has a worldwide reach, operating in over fifty countries with 156,000 employees, and servicing 48mln customers.23

    As of June 2023, Barclays has a poor review score on Trustpilot, but this reflects the experience of less than 0.02% of the bank’s customer base and is therefore an inadequate sample size.24

    Where Is Barclays Located?

    Barclays is headquartered in London, with it's registered office located at 1, Churchill Place, London, E14 5HP.25

    Companies House Registration

    The various companies under which Barclays operates are all registered with Companies House.

    Links to the bank’s various profiles are as follows:

    Company Registration Numbers

    Various registered companies cover the group operations of Barclays.

    These include:

    • Barclays Bank UK Plc: registered no. 9740322.
    • Barclays Insurance Services Company Limited: registered no. 973765.
    • Barclays Investment Solutions Limited: registered no. 2752982.
    • Barclays Bank Plc: registered no. 1026167.

    Barclays’ FCA Registration Details

    Barclays is authorised and regulated by the Financial Conduct Authority. 

    It's various FCA registration numbers are as follows:

    • Barclays Bank UK Plc: 759676
    • Barclays Insurance Services Company Limited: 312078
    • Barclays Investment Solutions Limited: 155595
    • Barclays Bank Plc: 122702

    How Did We Review the Information on Barclays?

    We reviewed the information on Barclays by sourcing facts and figures from Barclays' official website and UK financial news outlets and regulatory authorities.

    To make sure our readers receive the maximum benefit from our work, the Every Investor team performs rigorous fact-checks and compliance controls on all information it presents.

    The information in this article was last updated in 2024.

    Contact Barclays

    There are various ways in which to contact Barclays.

    Enquiries

    For enquiries, you can reach Barclays at the applicable number listed here, or visit the bank’s website for more contact options.

    Complaints

    When you need to lodge a complaint, you can do so by:

    • Starting a chat with a support agent in the Barclays app
    • Calling 0800 282 390 (if you are in the UK)
    • Addressing a letter to Freepost Barclays Customer Relations at no cost (no postcode or stamp is required)
    • Visiting your nearest branch.

    Common Questions

    What Is Barclays Equity Release and How Does It Work?

    Is Barclays Equity Release a Good Option for Retirement?

    How Do I Apply for Barclays Equity Release?

    What Are the Pros and Cons of Barclays Equity Release?

    What Are the Interest Rates for Barclays Equity Release?

    What Is Barclays’ History and Reputation as a Financial Services Company?

    Does Barclays Have an Equity Release Calculator?

    Did Barclays Ever Offer Equity Release?

    Can I Get Equity Release on a Buy-to-Let Property With Barclays?

    What Support Does Barclays Offer to Help Customers Make Informed Retirement Planning Decisions?

    What Is the Process for Applying for Barclays’ Retirement Planning Products and Services?

    How Does Barclays Compare to Other Banks in Terms of Customer Service and Satisfaction?

    What Is Barclays’ Approach to Sustainability?

    Does Barclays Offer Any Special Discounts or Promotions for Retirement Planning Products?

    How Does Barclays Protect Customers’ Personal and Financial Information?

    What Is Barclays’ Policy for Handling Customer Complaints?

    How Can Customers Get in Touch With Barclays for Help or Support With Their Accounts or Financial Products?

    In Conclusion

    Although Barclays does not offer equity release products directly, it is a well-respected financial institution offering a wide range of products and services that cater to the retirement market.

    The bank’s Wealth Managers assist and advise interested persons about ways in which to plan and prepare for retirement by making use of products like savings accounts, personal pensions, investment accounts, and more.

    Alternatives to equity release that are offered by Barclays include interest-only mortgages and unsecured loans, all of which have separate eligibility criteria that must be met if you want to make use of them.

    The decision to choose one of Barclays’ equity release alternatives should be based on your unique financial circumstances and long-term goals, so speak to a qualified financial advisor to explore your options.

    The features mentioned and the amounts raised, are subject to the lender’s criteria, terms, and conditions. These may take into account the age, health, and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.

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