Lifetime Mortgage Providers

Lifetime Mortgage Providers: The Top Companies to Consider
Are You Wondering Who to Turn To for a Lifetime Mortgage? Discover the Best Providers on the Market & Know Exactly Who You Can Trust.

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Lifetime Mortgage Providers

But we’re not going to let that happen! This article is your guide to finding a suitable and reputable lifetime mortgage provider to suit your circumstances. 

On this page, you’ll find:

  • A thorough list of the top lifetime mortgage providers in the UK.
  • What you need to know about lifetime mortgage providers.
  • How to apply for a lifetime mortgage.

Our well-versed editorial team has compiled a list of all the leading providers to help you make an informed decision before proceeding.

We’ve got all the information for you here.

Who Are the Main Lifetime Mortgage Companies in the UK?

The main lifetime mortgage companies in the UK are all registered with the Equity Release Council (ERC). 

There are currently 14 companies¹ registered with the ERC. 

These companies are authorised and regulated by the Financial Conduct Authority² and abide by the ERC’s no negative equity guarantee, so you will never owe more money than what your home is worth.

Lifetime Mortgage Providers: What You Need to Know

What you need to know about lifetime mortgage providers is the minimum applicant age for most providers is 55; for others, it’s 60. 

Some providers also have a maximum entry-level age, usually between 80 to 95.

Here are a few more need-to-know facts:

  • All lifetime mortgage providers will require an appropriate valuation on your home. 
  • Most providers offer a maximum loan to value (LTV) ratio of between 50%-55%, and some may go as high as 60%.
  • Lifetime mortgages usually have a fixed interest rate. Some providers offer variable-rate lifetime mortgages, but these plans provide less certainty. In comparison, others may allow early interest repayments rather than letting the interest roll up.
  • Make sure the provider offers a “no negative equity” guarantee. Meaning the amount you owe the lender can never exceed the value of your home.

It’s crucial that you shop around for a plan that suits your specific needs, as some providers may offer you better interest rates, more affordable early repayment options, more flexibility, etc. 

Did you know?

Making numerous mortgage applications with different lenders can harm your credit score³

You can avoid this by working with a specialist who will know where to look for the best deals and from which lenders.

Best Lifetime Mortgage Providers

The best lifetime mortgage providers are the ones who are authorised and regulated by the FCA.

However, the best provider for you depends on your circumstances.

This section takes a detailed look at the best lifetime mortgage providers in the market.

These providers are authorised by the FCA and members of the ERC.

Liverpool Victoria (LV)

  • LV is an excellent pick if you’re over 60 years old and looking for a company with low early repayment charges.
  • All their products have fixed early repayment charges:
    • 5% for the first 5 years.
    • 3% from years 6 to 10.
    • 0% from 10 years and onwards.
  • They don’t have a wide variety of lifetime mortgage plans, but they do offer lump sum and flexible mortgages with the loan to value (LTV) ranging from 20% – 50% depending on your age and property value.
  • Their flexible mortgages have a maximum loan of either triple the initial amount or the maximum LTV (whichever is less). 
  • You can make smaller withdrawals from your cash reserve over the next 15 years, but these withdrawals must be at least £2,000 or more.
  • LV also offers two free revaluations included in the flexible plan, allowing you to increase your maximum loan amount if the value of your home increases.
  • They get good customer reviews, and their process is straightforward. 

Aviva Lifetime

  • Their packages are ideal for older borrowers.
  • While most equity release plans have a maximum age of 90, Aviva accepts applications at any age over 55.
  • Their early repayment charges can be as high as 25%, though.
  • They offer both flexible withdrawals as well as voluntary partial repayment.
  • To qualify for their interest-only lifetime mortgage, you need to be a homeowner aged 55 or older. 
  • They work their interest rates according to your age, health, property value, and loan amount.
  • The LTV available is worked out according to your age and the value of your home, but it’s usually between 20%-52%. 
  • Inheritance Protection and Downsizing Protection options are available with their plans.
  • The minimum cash lump sum for the Lifestyle Lump Sum Max is £15,000
  • The minimum cash lump sum for the Lifestyle Flexible Option is £10,000.
  • Their annual rate (AER) is 3.40%.
  • They offer cash lump sums of £10,000 to £750,000.  
  • They have a 3-year No Early Repayment Charge.
  • To apply for one of their products, you must use an advisor.
  • They get mixed reviews online.

Canada Life

  • Canada life has an extensive portfolio of retirement and investment products.
  • You receive a free valuation for Canada Life’s equity release mortgages.
  • You can add a cash reserve facility to your lifetime mortgage upon application.
  • You can pay 50-100% of the interest on their Interest Select mortgages for between 5 years and the total mortgage term. 
  • After the 5th year, you have the option to include Downsizing Protection and an ERC Waiver during the first 3.
  • Lifetime Annuities and Pension Schemes are available.
  • They have fixed Early Repayment Charges (ERCs) for the first 8 years.
  • Option to include Inheritance Guarantee.
  • You can receive a guaranteed lifetime income with their CanRetire Fixed Term Income Plan.
  • Fairly negative online reviews

Legal & General

  • Legal & General is a good option if you need a bigger loan.
  • They offer loans up to £2m, but their early repayment charges can be high. 
  • Their lifetime mortgages are available for properties worth £100,000 plus.
  • Legal and General have 3 types of lifetime mortgages available: 
    • Flexible Lifetime Mortgage
    • Optional Payment
    • Income Lifetime Mortgage
  • These schemes have the option to borrow more in the future if you don’t take the maximum amount at the beginning of the mortgage.
  • With their Income Lifetime Mortgages, you receive an initial lump sum and then a tax-free income every month over a fixed term of 10, 15, 20, or 25 years.
  • Their LTVs usually range between 38%-44%.
  • .The annual interest rate (AER) is 3%.
  • They offer Cashback and Inheritance Protection.
  • To apply for one of their products must use an advisor.
  • They also offer an extensive range of related services, including investment opportunities and ISAs, pension schemes, life cover, and insurance.
  • Online customer reviews are pretty negative.

More 2 life

  • More 2 life might be the best option for you if you’re looking for flexibility.
  • Their products are the most flexible products on the market. 
  • They have low early repayment charges, which are eliminated after 10 years. 
  • Their different plans have different features, such as:
    • Inheritance Protection
    • Downsizing Protection
    • Repayment Charge Exemption
    • Partial Repayments
    • Cashback.
  • Their LTVs range from 5% to 56%.
  • More 2 Life has a wide variety of lifetime mortgage services. Their different categories are:
    • Prime – offers loans up to £600,000.
    • Maximum – offers loans up to £750,000
    • Tailored – offers loans up to £600,000
    • Capital – offers loans up to £1.5m
    • Flexi – offers loans up to £1.85m
  • Annual rate (AER) of 3%
  • You can receive a lump sum of £250,000 to £2,000,000 as a cash payment.
  • Favourable online customer reviews

Nationwide Building Society

  • Nationwide Building Society is the seventh-largest cooperative financial institution and the most prominent building society in the world.
  • There is no valuation or product fees involved.
  • You’ll receive £1000 cashback upon completion of the application.
  • You can pay back up to 10% of the loan every year without paying early repayment charges.
  • They offer a range of complementary products, including savings and ISAs, Current Accounts, Personal Loans, and investments.
  • Poor online customer reviews.

Pure Retirement

  • Pure Retirement offers 2 types of lifetime mortgages.
    • Pure Max Drawdown products have higher LTVs and cash facilities.
    • Pure Sovereign schemes have lower maximum LTV and interest rates.
  • The application process usually takes around 8 weeks.
  • They don’t have a vast product range to choose from.
  • They offer cash lump sums from £250,000 to £2,000,000. 
  • Annual interest rate (AER) of 2.99%
  • No online reviews or customer feedback are available.

Responsible Lending

  • Responsible Lending has both lump sum and drawdown later life mortgages available.
  • Their lifetime mortgage rates are fixed, so you do not pay interest monthly. 
  • They don’t have many products to choose from.
  • Their advisers create personalised illustrations to aid product understanding.
  • No online reviews or customer feedback

Scottish Widows

  • No early repayment charges.
  • Their mortgages are portable, meaning you can transfer your loan to another house if you move.
  • Drawdown facilities are available for the first 7 years of your mortgage.
  • Downsizing and Inheritance Protection options are available.

No matter which later life mortgage provider you choose, you need to speak to a specialist financial adviser to make sure you correctly understand all the details.

Common Questions

How do I Apply with a Lifetime Mortgage Provider?

Do Banks & Building Societies Offer Lifetime Mortgages?

Conclusion

The right lifetime mortgage scheme is a great way to supplement your pension income.

However, there are an increasing number of lifetime mortgage companies and plans to choose from.

Finding a provider who offers the right solution for your circumstances can be a daunting task to take on by yourself. 

A financial advisor will be able to help you find a suitable lender and the perfect product for your needs so that you can enjoy the financial freedom you deserve.

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Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor 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.