If you are financially planning for your retirement, you may have wondered if Barclays offers 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 its strongest quarterly profit since 2011 in Q1 of 2023.¹

As experts in financial products for retirees, EveryInvestor’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 who the best equity release companies in the UK are.

NOTE: EveryInvestor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of EveryInvestor 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.

Barclays in the UK: An Overview

Barclays plays a role in the UK’s financial market by offering a diverse range of banking and investment services to both individuals and businesses, indirectly influencing the UK’s equity release market by advising on retirement planning, despite not offering equity release products directly.

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

What Are the Barclays Mortgage Lending Criteria?

Barclays mortgage lending criteria assess income, credit history, and property value to determine eligibility and offer tailored loan solutions to applicants.

This involves a thorough review of an applicant’s income, credit history, and the property’s value, while income analysis includes employment wages, self-employed earnings, and other consistent income to gauge the applicant’s capability to sustain mortgage repayments.

Credit history is another pivotal factor, with Barclays assessing past financial conduct to evaluate risk, with a positive credit score and responsible borrowing behaviour being advantageous.

Additionally, the property in question is valued to confirm it offers sufficient security for the mortgage, rounding off a comprehensive evaluation process aimed at responsible lending.

What Mortgage Solutions Does Barclays Offer for Retirees in the UK?

Barclays offers retirees tailored mortgage solutions designed to fit their unique financial situations and retirement lifestyle.

Does Barclays Offer Equity Release or Lifetime Mortgages for Retirees?

No, Barclays does not offer equity release products or lifetime mortgages directly.

Retirees looking for these specific financial solutions may need to explore other financial institutions or specialist providers that focus on equity release and lifetime mortgages.

Barclays does provide a range of other financial services that could be beneficial for retirees, including traditional mortgages, advice on wealth management, and planning for retirement, but for equity release or lifetime mortgages specifically, they will likely direct customers to other providers.

How Does Barclays’ Retirement Interest Only Mortgage Work?

Barclays’ Retirement Interest Only Mortgage (RIO) is designed for older homeowners seeking to borrow against their property’s value while maintaining manageable repayments.

Unlike traditional equity release schemes, the Barclays RIO mortgage allows borrowers to pay the monthly interest on their loan without reducing the principal amount.

This means the loan amount remains constant, and the property’s equity is only reduced when the house is sold, typically as part of the borrower’s estate.

Eligibility for Barclays’ RIO mortgage is based on income and affordability assessments to ensure retirees can comfortably meet the interest payments from their retirement income.

Does Barclays Support the Retirement Market With Mortgages?

Yes, Barclays supports the retirement market by offering mortgage options suitable for retirees tailored to meet their unique financial needs; additionally, it 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

Exploring Barclays Equity Release Alternatives: What’s Available?

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 With Barclays: What Are Your 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

Barclays Pensions and Savings Accounts: A Guide for Seniors

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

Barclays ISAs: A Smart Choice for Retirement Saving?

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

How Can Barclays Financial Planning Services Aid Your Equity Release Decisions?

Through its Financial Planning Services, Barclays assists individuals in navigating their equity release decisions by providing expert advice and comprehensive evaluations of their financial status and retirement objectives, ensuring choices align with long-term financial security and personal goals – despite not offering equity release service directly.

Barclays Financial Planning and Advisery Services offer comprehensive guidance for individuals considering equity release.

Their advisors are equipped to assess your financial situation, goals, and needs, providing personalised advice on whether equity release is suitable for your circumstances.

This service ensures that clients make informed decisions, fully understanding the benefits, risks, and long-term implications of releasing equity from their homes.

Costs of Barclays’ Mortgage Options

Barclays’ mortgage options come with various costs, including interest rates, fees for advice and arrangement, and potential early repayment charges, tailored to each borrower’s specific financial needs and circumstances.

What Are the Interest Rates for Barclays 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 5.65% to 5.85%* 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.

What Are the Rates for an Interest-Only Mortgage at Barclays?

The rates for an interest-only mortgage at Barclays are competitive and tailored to meet the financial circumstances of individual borrowers.

Interest rates can vary based on the loan-to-value ratio, the borrower’s credit history, and the overall market conditions.

Barclays offers fixed and variable rate options, allowing borrowers to choose based on their preference for payment stability or the potential to benefit from lower rates in a declining market.

Prospective borrowers should consult with Barclays directly or use the Barclays Mortgage Calculator online for the most current and applicable rates to their situation.

How Does Barclays Uphold Customer Trust and Service Quality?

Barclays commits to responsible lending and exceptional customer service, ensuring trust and satisfaction.

Barclays’ Promise: Responsible Lending, Lifetime Mortgages, and Exceptional 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

Evaluating 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

Why Should You Choose Barclays?

Choosing Barclays offers the advantage of engaging with a reputable financial institution known for its comparative market insights and strict adherence to regulatory compliance, ensuring a secure and informed banking experience.

How Does Barclays Compare to the Top 10 Equity Release Companies?

Barclays holds a competitive position among the top 10 equity release companies, offering a range of products tailored to meet the diverse needs of retirees.

While Barclays excels in brand reputation, financial stability, and customer service, it’s important for consumers to compare specific features such as interest rates, loan-to-value ratios, and flexibility in repayments.

Barclays’ commitment to responsible lending and transparent advice positions it strongly, but individual circumstances will dictate the best provider.

Comparing Barclays against other top equity release companies is essential to find the most suitable option for homeowners’ retirement planning strategies.

Finding Barclays: Locations and Services for Equity Release

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

Barclays Companies House Registration and FCA Registration: What You Need to Know

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

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

• Barclays Bank UK Plc
• Barclays Insurance Services Company Limited
• Barclays Investment Solutions Limited
• Barclays Bank Plc

Barclays Company Registration Numbers: A Quick Overview

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: Ensuring Trust and Compliance

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

Common Questions

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.

Read More: HSBC Equity Release

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.