Halifax Equity Release & Lifetime Mortgage Review in 2024

Are You Considering Halifax’s Funding Alternatives for Your Retirement? Discover the Pros, Cons, Fees, Interest Rates and Products on Offer. All the Answers You Need Are Right Here…
  • 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

  • The process for Halifax equity release involves an initial consultation, a financial review, solicitor involvement, a property valuation, and finally, the release of your equity.
  • They are considered safe, being regulated by the Financial Conduct Authority and a member of the equity release Council.
  • The interest rates vary and are dependent on personal circumstances, market conditions, and the value of your property.
  • Their equity release does come with associated fees such as solicitor fees, advisor fees, and a property valuation fee.
  • The pros include accessing tax-free cash and no monthly repayments, while the cons include reducing your estate's value and potentially affecting your entitlement to state benefits.

Are you wondering if Halifax equity release is still an option?

Financial planning for retirement can be daunting, and some people avoid it once they discover the huge list of providers, products, and services they have to choose from.

The mission of Every Investor’s experienced team of researchers and writers is to demystify the process, and in this article, we are talking about Halifax to establish whether it is in a position to help readers reach their retirement goals through products like equity release.

In This Article, You Will Discover:

    Our team has researched Halifax's offerings to provide you with a comprehensive guide, presented in a clear, unbiased manner.

    Before we make any information available, we put our findings through strict processes including fact cross-checking and compliance checks.

    To keep our readers up to date, we also update our articles regularly.

    Therefore:

    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 Halifax, the Lloyds Banking Group, or the Bank of Scotland. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Halifax, the Lloyds Banking Group, or the Bank of Scotland.

    Who is Halifax?

    Halifax Bank is a trading division of the Bank of Scotland, which is part of Lloyds Banking Group.

    Originally established in 1853 as a building society, Halifax underwent several transformations over the years, growing to the fifth-largest bank in the UK in terms of market capitalisation by 1997.1

    What Is Equity Release?

    Equity release is a financial strategy for those aged 55 or older, allowing them to utilize their home’s equity as a cash resource, without selling.

    It offers an alternative way to access property value.

    The unique repayment aspect of equity release is its deferred nature.

    The loan and interest are repaid from the house's sale, usually triggered by the homeowner's death or transition to long-term care.

    Learn More: Release Equity Mortgage

    What Are the Benefits and Risks of Halifax Equity Release?

    Halifax Equity Release is an ideal financial tool if you're an older homeowner looking for an additional income source.

    It offers the advantage of unlocking the equity built in your property while you still live there, providing tax-free cash which can be used for various purposes, including home improvements, holidays, or supplementing retirement income.

    Furthermore, it comes with 'no negative equity guarantee', which means you'll never owe more than your home's value, protecting you from falling property prices.

    However, Halifax Equity Release also comes with risks. It can influence your future options regarding moving or selling your house, as you will need to repay the loan from the sale proceeds.

    It may also affect your tax status and potential eligibility for means-tested benefits.

    The interest accrued over time can substantially reduce the inheritance you might leave.

    Therefore, it's crucial to consider these factors and seek professional financial advice before deciding on equity release.

    Why Should You Consider Halifax?

    You may consider Halifax because of it's range of mortgage products and incentives like it's monthly Mortgage Prize Draw2 or its Green Living Reward cashback offer for eco-friendly home improvements.3

    Other aspects to consider include the bank’s efforts to help those affected by the war in Ukraine and its retirement-targeted offerings.

    Halifax Works to Help Those in Distress

    Halifax uses it's resources to help people in distress through various initiatives.4

    For instance, the bank’s implemented measures to help Ukrainian citizens who are currently caught up in the war with Russia. 

    These steps include:

    • Refunding current account payment fees when customers send money to Ukraine.5
    • Continuing to provide home insurance to UK citizens when they house Ukrainian refugees without requiring notice of this change in circumstances.6

    Halifax is also currently* waiving credit card fees when customers send money to charities not based in the UK.7

    *Accurate as of 23/07/2023.

    Does Halifax Cater to the Retirement Market?

    Yes, Halifax caters to the retirement market through products including individual savings accounts (ISAs), savings accounts, investment accounts, personal loans, and by offering financial planning services.

    When customers want to take out a personal pension or combine various pensions into one pension pot, Halifax will put them in touch with another subsidiary of the Lloyds Banking Group called Scottish Widows.

    Does Halifax Offer Any Equity Release Products?

    No, Halifax does not offer any equity release products directly.

    However, if you would like to pursue a lifetime mortgage, the bank will connect you with Scottish Widows.8

    What Products and Services Does Halifax Offer?

    Halifax provides a diverse range of financial products and services. 

    These include:

    • Bank accounts and credit cards
    • ISAs, savings, and investment accounts
    • Personal loans
    • Mortgages
    • Home and car insurance
    • Business banking
    • Travel services
    • Mental health support
    • Accessibility and disability support
    • Serious illness support
    • Bereavement support9

    Because of the breadth of the bank’s services, it can help customers in all areas of their personal finance management.

    If you would like to view Halifax’s mortgage options, take a look here, and if you would like to talk to the bank about your equity release options, click here

    How Does Halifax Compare With Other Providers?

    Halifax compares well with other providers, though the bank’s customer satisfaction score, as measured by Which? in 2022, places Halifax in the middle of the field when it comes to mortgage lenders.10

    According to the same publication, Halifax offers competitive mortgage deals relatively often when compared to other lenders.11 

    Does Halifax Have an Equity Release or Lifetime Mortgage Calculator?

    No, Halifax does not have an equity release calculator. 

    However, the bank has a mortgage calculator, which can give you an estimate of how much you may be able to borrow on a traditional mortgage or provide an indication of how changes to your mortgage could affect your repayment schedule. 12

    What Do Halifax’s Customers Say About It?

    Halifax’s customers have not provided the best reviews on the review platform Trustpilot.

    However, when reading such reviews, you should always consider the overall size of a company’s customer base compared to the number of people who have made complaints about it. 

    There will always be a small portion who express dissatisfaction, and when looked at in context in this case, it is a negligible percentage of the bank’s customer base.

    In contrast, reviewers on the platform SmartMoneyPeople have given very positive feedback, mentioning excellent customer service and great account rewards.

    How Did We Review the Information on Halifax and Equity Release?

    We reviewed the information on Halifax and equity release by conducting thorough research by reviewing Halifax's official website, industry publications, reputable financial resources, and customer testimonials. 

    This was done to ensure accuracy and the provision of current information. 

    Disclaimer: We aim to provide you with the most reliable and current information available at the time of writing.

    What Are Halifax’s FCA Details?

    Halifax’s FCA details can be found below.

    Regulators

    Halifax, as a division of the Bank of Scotland, is regulated by two bodies.

    These are:

    • The Financial Conduct Authority (FCA)13
    • The Prudential Regulation Authority (PRA)14

    Registration Numbers

    Since Halifax is a division of the Bank of Scotland and not its own legal entity, its FCA registration is the same as that of the Bank of Scotland.

    The details are:

    • FCA Registration Number: 169628

    FCA and Companies House Links

    • FCA15
    • Companies House16

    What Are Halifax’s Contact Details?

    For banking services, Halifax can be contacted via web chat or via a secure call from the mobile banking app. 17

    Steps to initiate a call via the app are laid out here.

    If you are looking for Halifax equity release near you, the branch nearest to you can be found by clicking here.

    If you use telephone banking, you will need to use Halifax’s Voice ID feature, and steps for using it are provided here.

    You may also contact Halifax by phone, app or post:

    • +44 800 072 9779
    • Halifax App18
    • PO Box 548, Leeds, LS1 1WU.

    Common Questions

    What Is the Process for Halifax Equity Release?

    How Safe Is Halifax Equity Release?

    What Are the Interest Rates for Halifax Equity Release?

    Are There Any Fees Associated with Halifax Equity Release?

    What Are the Pros and Cons of Halifax Equity Release?

    Does Halifax Offer an Equity Release Plan for Pensioners?

    Does Halifax Hold Membership of the Equity Release Council?

    Who Owns Halifax?

    Where is Halifax Located?

    Does Halifax Offer Retirement Mortgages?

    Is Halifax Safe?

    In Conclusion

    When it comes to managing your financial affairs in retirement, it is important to consider your options carefully.

    While Halifax itself does not offer products like lifetime mortgages and pensions directly, it can put you in touch with Scottish Widows Bank if one of it's own products e.g., investment and savings accounts, do not meet your retirement financing needs

    If equity release is not your priority, Halifax may also be worth considering for other financial services like home insurance, car insurance, or a traditional mortgage.

    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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