Lloyds Equity Release & Lifetime Mortgage Review in 2024

Are You Looking To Gain Access to Your Home Capital? Find Out if Lloyds Offers Equity Release, the Pros and Cons and if It Is Right for You.
  • 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

  • Lloyds equity release works by allowing homeowners over the age of 55 to borrow a percentage of their home's value, typically repayable upon death or sale of the property.
  • The rates can differ based on factors like age and property value, so it's best to obtain a personalised quote from Lloyds Bank.
  • You can apply either online or by scheduling an appointment with a Lloyds advisor to discuss your financial needs and eligibility.
  • There are no hidden fees, but standard charges include an arrangement fee and valuation fee, both of which should be clearly outlined in your agreement.
  • The benefits include access to a tax-free lump sum without needing to move, the ability to make repayments to reduce the overall cost, and the assurance of a 'no negative equity' guarantee.

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.

In This Article, You Will Discover:

    Therefore:

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

    Who Is Lloyds?

    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, 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 Features of Lloyds Equity Release?

    Lloyds Equity Release is a financial product that lets homeowners unlock the value tied up in their property without having to move.

    The key features include its lifetime mortgage, which is a long-term loan secured on your home that you don't need to repay until you pass away or move into long-term care.

    Additionally, it also offers a 'no negative equity guarantee', ensuring that you'll never owe more than your home's worth.

    Other features include the 'drawdown' facility, allowing you to take out money in small amounts after an initial lump sum.

    This way, you only pay interest on what you've withdrawn, thereby managing your debt more effectively.

    Lloyds also offers flexibility with the option to make voluntary repayments, this can significantly reduce the overall cost of the loan.

    Finally, they have a comprehensive customer support system, demonstrating their commitment to helping clients navigate this complex financial decision.

    Why Consider Lloyds?

    You should consider Lloyds for a few reasons, such as it is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) and places great importance on equality and diversity. 4

    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 at the forefront of it's operations.

    What Services Does Lloyds Offer?

    Lloyds offers banking and wealth management services that include equity release and other retirement products and services.

    More 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 directly, but it can put you in touch with Scottish Widows Bank, a subsidiary of the Lloyds Banking Group.

    What Are Lloyds’ Interest Rates?

    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 5.20% to 6.30%* AER fixed for the mortgage duration.

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

    What Are Lloyds’ Fees?

    The fees that Lloyds charges for mortgages 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 and range from £225 to £1,150.
    • Product fees - the product fee will vary and will be listed in the offer.
    • Account fees - an account fee of £295 is applicable to open and manage your mortgage account.

    Does Lloyds Have An Equity Release 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 Advantages and Disadvantages of Lloyds?

    The advantages and disadvantages of Lloyds include that Lloyds is authorised and regulated in the UK by the FCA; however, any equity release product will reduce the inheritance you leave to your heirs.

    More information:

    Lloyds Pros

    The pros of Lloyds include that it is authorised and regulated in the UK by the FCA.

    More information.

    • Lloyds is authorised and regulated in the UK by the FCA.
    • It is a trusted financial services provider with years of industry experience.
    • The interest rate you will get on equity release is not standard; it is based on your personal profile.
    • 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

    • You need to deal with Scottish Widows Bank to obtain equity release from Lloyds, so it is not a direct offering from Lloyds.
    • 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.

    How Did We Review the Information On Lloyds?

    The review of Lloyds' information is compiled by our economic experts, taking all the market findings 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.

    Lloyds Customer Reviews

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

    Some reviews that you can check:

    Lloyds Complaints

    Lloyds’ complaints can be lodged in person, via it's online form, in writing, or by telephone.

    More information:

    • Via it's online form on it's 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 Trustpilot6 or Feefo7 for its attention.

    Lloyds FCA Details

    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

    Lloyds Contact Number

    Lloyds’ contact number is 0345 602 1997.

    Common Questions

    How Does Lloyds Equity Release Work?

    What Are the Rates for Lloyds Equity Release?

    How Can I Apply for Lloyds Equity Release?

    Are There Any Hidden Fees in Lloyds Equity Release?

    What Are the Benefits of Lloyds Equity Release?

    Is Lloyds a Member of the Equity Release Council?

    Who Owns Lloyds?

    Does Lloyds Do Equity Release?

    In Conclusion

    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, but with it's many years of experience in the industry, it may well have an alternative that could better suit your needs.

    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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