With all the hype around equity release, we are sure you are looking for the best equity release in the UK, and wondering if a provider like Lloyds can help you access your property's equity.

If you are considering Lloyds, we have noted all the essential things you need to know about it.

Therefore:

NOTE: EveryInvestor is an independent third-party data provider, and the information shared here reflects their views alone, not necessarily those of Lloyds. This article is for informational purposes only and should not be considered financial advice or a recommendation to engage with any products offered by Lloyds.

Who Are Lloyds and What Is Their Role in Equity Release?

Lloyds is a trusted and well-established financial services provider in the UK that has been around since 1765.¹

It is a subsidiary of the Lloyds Banking Group which is a privately owned banking entity.

Lloyds’ offering includes personal finance and equity release solutions, the latter of which is provided through Scottish Widows Bank, a subsidiary of the Lloyds Banking Group.²

Lloyds Bank is widely considered one of the “Big Four” clearing banks in the UK.³

What Is Equity Release?

For seniors over 55, equity release means converting their home's built-up value into usable cash, without relocating.

It's a pathway to access locked-in property wealth.

The repayment of this loan is distinctive; it's deferred until the property is sold, usually linked to the homeowner's significant life events, like death or moving to a care home.

Learn More: Define Equity Release

What Are the Key Features of Lloyds Bank Equity Release?

The key features of Lloyds Bank equity release include the fact that Lloyds' clients can only access equity release plans through Scottish Widows.

The main features of Scottish Widows' equity release plans include:

• Lump Sum or Drawdown: Plans provide a lump sum with the option of a future release drawdown facility to support long-term financial needs.
• Future Release Facility: Clients can access additional funds in the future, subject to lending criteria at the time.
• Fixed Rate: The interest rates on Scottish Widows' lifetime mortgages are fixed for life.
• No Monthly Payments: There are no mandatory monthly interest payments during the client's lifetime; the loan and accrued interest are repaid when the property is sold, typically upon death or entry into long-term care.
• No Negative Equity Guarantee: Clients or their estates will never owe more than the property's sale value, provided it is sold for the best price reasonably obtainable.
• Inheritance Protection: Clients are able to protect a percentage of their property's value to pass on to beneficiaries, ensuring a portion of the estate is preserved.
• Bereavement Exemption: The surviving borrower can repay the lifetime mortgage without incurring early repayment charges (ERCs) if they choose to redeem the loan after the co-borrower's death.⁴

If you have questions about the Scottish Widows lifetime mortgage, speak to your Lloyds advisor.

Why Consider Lloyds Bank for Your Lifetime Mortgage or Equity Release?

You might consider Lloyds for a few reasons, including the fact that it is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA).⁵

More reasons to consider Lloyds:

• It is a trusted and reputable financial services provider that has been in business for three centuries.
• It is authorised and regulated in the UK by the FCA, so customer safety and fairness are a priority.
• It offers equity release plans through Scottish Widows Bank, a Lloyds Banking Group subsidiary.
• Equality and diversity are mentioned as a priority.⁶

Remember that if you wish to access an equity release plan through Lloyds, you will be referred to Scottish Widows.⁷

What Equity Release Services Does Lloyds Bank Offer?

Lloyds offers banking, wealth management, and retirement services.

Some of the services offered by Lloyds:

• Current accounts
• Credit cards
• Savings accounts
• ISAs
• Investment products and services
• Home Insurance
• Wealth management
• Retirement products and services
• Mortgages
• Loans

Does Lloyds Offer Equity Release or Lifetime Mortgages?

No, Lloyds does not offer equity release or lifetime mortgages directly, but it can put you in touch with Scottish Widows Bank, a subsidiary of the Lloyds Banking Group.

What Costs Are Involved With Lloyds Equity Release?

Costs involved with Lloyds equity release, which is provided by Scottish Widows, include interest, application fees, and potential charges for early repayment.

What Are Lloyds Mortgage Rates for Equity Release and Lifetime Mortgages?

Lloyds interest rates will vary based on the product or service you are considering.

If you are interested in equity release interest rates, they are in the region of 5.97% to 6.28%* AER fixed for the mortgage duration.

*While we regularly review our rates, these may have changed since our last update.

What Fees Are Associated With Lloyds Bank Equity Release?

The fees associated with Lloyds Bank equity release, as provided by Scottish Widows, include items such as product fees and valuation fees.

Charges you will need to cover for a Lloyds mortgage:

• Valuation fees: vary according to your property value; however, Scottish Widows offer a free valuation.⁸
• Product fees: The product fee will vary and will be listed in the offer.
• Solicitors' fees: These vary, but Scottish Widows will contribute £600 to your legal advice fees.⁹

Does Lloyds Offer an Equity Release or Mortgage Calculator?

No, Lloyds does not have an equity release calculator.

You are welcome to use our simple online calculator below to find an approximation of how equity you could release.

What Are the Benefits and Limitations of Choosing Lloyds for Equity Release?

Benefits include access to lump sums or regular payments, while limitations may involve interest accumulation and impact on inheritance.

Lloyds Pros

The pros of using Lloyds for equity release include the fact that it is authorised and regulated in the UK by the FCA.

Other benefits:

• Lloyds is authorised and regulated in the UK by the FCA.
• It is a trusted financial services provider with years of industry experience.
• There is a drawdown lifetime mortgage plan available which is flexible and incurs less interest than a lump sum lifetime mortgage.
• Scottish Widows Bank, the equity release provider for Lloyds, is an Equity Release Council (ERC) member.

Lloyds Cons

The cons of using Lloyds for equity release include the indirect route you'll have to take.

Drawbacks to consider:

• You need to deal with Scottish Widows Bank to obtain equity release from Lloyds, so it is not a direct offering from Lloyds.
• Scottish Widows' lifetime mortgages are only available as part of remortgaging applications.¹⁰
• Your inheritance will be reduced when you make use of a lifetime mortgage.
• You may have to pay early repayment charges if you settle your loan prematurely.
• Equity Release may not be suitable for everyone, which is why your advisor will ask you to consider other options before proceeding.
• You may want to discuss the option of equity release with your loved ones, to make them aware that it is something you are considering.

What Do Customer Reviews Say About Lloyds Equity Release?

Lloyds equity release customer reviews are generally mixed with some happy and some unhappy customers.

Some reviews that you can peruse:

• Client reviews of Lloyds on Trustpilot
• Smart Money People reviews of Lloyds

Lloyds Complaints

Complaints can be lodged in person, via the bank's online form, in writing, or by telephone.

More information:

• Via the bank's online form on its complaints page.
• By telephone: +44 1733 462 267.
• In writing to: Lloyds Bank, Customer Services, BX1 1LT. 

You can also complain in person at your local branch.

Alternatively, you can voice your concerns on review sites such as Trustpilot¹¹ or Feefo¹² for the bank's attention.

Who Is Eligible for Lloyds Bank Equity Release? Understanding Qualification Criteria

To qualify for Lloyds Bank equity release, which is provided through Scottish Widows, you must be between the ages of 55 and 85 and own a property in the UK.¹³

The property must be your main residence and meet certain valuation criteria, usually starting from £70,000.

Your eligibility also depends on your property's condition and location—it has to be located in England, Scotland or Wales.

How Does Lloyds Bank Equity Release Compare to Other UK Providers?

Lloyds Bank offers equity release products through its partnership with Scottish Widows, providing lifetime mortgages as their primary option.

Here’s how Scottish Widows compares to other UK providers:

• Scottish Widows offers competitive interest rates in line with other major providers, though rates can vary based on individual circumstances and market conditions.
• Lloyds Bank is known for its extensive network of branches, which can be a significant advantage for those who prefer in-person consultations. Other providers may offer more specialised equity release advice but might not have the same level of accessibility.
• Lloyds Bank has a solid reputation and long-standing presence in the financial services industry. This provides a sense of security and trust for customers. Other providers like Aviva and Legal & General also have strong reputations and extensive experience in the equity release market.

Overall, Lloyds Bank offers a reliable and competitive option for equity release, but it’s essential to compare different providers to find the best solution for your specific circumstances.

What Are the Predictions for Lloyds Bank Equity Release Rates?

Predicting interest rates for Lloyds Bank's equity release products (offered by Scottish Widows) can be challenging owing to the many factors that influence rates, such as economic conditions, inflation, and central bank policies.

However, based on current trends and market analysis, it is expected that interest rates for equity release products, including those offered by Lloyds Bank through Scottish Widows, may remain relatively stable or see slight decreases in the near future.

Goldman Sachs predicts that the base rate will fall to 3% in 2025, which may mean a drop in interest rates.¹⁴

For the most accurate and up-to-date information, it's always best to consult directly with Lloyds Bank or a financial advisor.

What Is the Process for Accessing Equity Release Funds Through Lloyds?

The process involves consultation, application, property valuation, and legal checks before funds are released.

What Is the Process and Timeline for Accessing Funds Through Lloyds Bank Equity Release?

Accessing funds through Lloyds Bank equity release begins with a consultation with a Scottish Widows lifetime mortgage advisor to discuss your needs and eligibility.

After this initial meeting, a detailed property valuation is conducted and you will be required to meet with an independent solicitor to handle the legal side of the agreement.

The entire process, from application to receiving funds, typically takes 8 to 12 weeks, depending on your specific situation.

During this period, Scottish Widows should keep you informed at every step.

Once everything is approved, and the paperwork is complete, the funds are released to your solicitor, who will transfer the amount needed to repay any existing mortgage you may have. The balance will then be transferred to your account.

This timeline allows for thorough consideration of your options and the completion of necessary legal checks.

How Can You Transfer Your Equity Release or Lifetime Mortgage to Lloyds Bank?

Transferring your equity release plan to Scottish Widows involves a review of your current plan's terms and a comparison with what Lloyds can offer.

You'll need to consider any early repayment charges or penalties from your existing lender, and you'll have to make sure this kind of move is allowed under the Scottish Widows terms.

How Can You Get More Information or Apply for Lloyds Equity Release?

Contact Lloyds directly through their website or by phone for detailed information and guidance on applying for equity release.

How We Reviewed Lloyds Bank Equity Release Options

The review of Lloyds' equity release options was compiled by our later-life finance experts by researching the relevant plans and adding the most pertinent facts to our guide for you to use.

Please note that this article is an unaffiliated, independent review of Lloyds and / or Scottish Widows Bank.

What Are Lloyds Bank's FCA Details?

Lloyds Bank is regulated by the Financial Conduct Authority (FCA), ensuring their equity release schemes meet strict standards.

FCA Address

Lloyds, 25 Gresham Street, London, EC2V 7HN.

Trading Names

• Black Horse Specialist Mortgages
• Cheltenham and Gloucester
• Goldfish
• Lloyds Bank
• Lloyds DCNSP
• Lloyds TSB Bank
• loansdirect.co.uk
• MBNA
• Mayfair Private Banking
• Scottish Widows Bank

FCA Permitted Services

• Banking
• Insurance
• Mortgages and Finance
• Consumer Credit
• Payment services and E-Money
• Pension
• Investments

Regulators

• Financial Conduct Authority (FCA)
• Prudential Regulation Authority (PRA)

Registration Numbers

• FCA Ref Number: 119278
• Companies House Number: 00002065

FCA and Companies House Link

• FCA Link: FCA Link
• Companies House Link: Companies House Link

How Can You Contact Lloyds for Equity Release Inquiries?

Lloyds’ contact number is 0345 602 1997.

Common Questions

Concluding Thoughts on Using Lloyds for Equity Release

Lloyds is undoubtedly one of the first names that come to mind when you think of financial solutions or personal banking in the UK.

Not only does it offer a wide range of services and products, but it is also widely accessible.

Lloyds may not offer equity release directly, but you may well be able to find a solution to suit your needs through its partner, Scottish Widows.

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.