Lloyds Equity Release: What to Know in 2024

Lloyds Bank offers a lifetime mortgage, enabling individuals over 55 to access their home's equity while retaining ownership. They stand out with a no-negative-equity guarantee, ensuring you never owe more than the value of your home.
  • Last Updated: 09 Apr 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
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.
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Key Takeaways
  • Lloyds lets those of retirement age borrow tax-free money against their home, which is repaid when they sell or pass away, with perks that include options for repayment to reduce costs and a guarantee against negative equity
  • Rates can vary based on age and home value—grab a tailored quote directly from Lloyds.
  • Apply online or chat with an advisor to see if you’re eligible; additionally, expect clear costs from the get-go, including arrangement and valuation fees.

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.

    What Is Equity Release and How Does It Work at Lloyds?

    Equity release at Lloyds allows homeowners to access their property’s value as cash, either as a lump sum or in smaller amounts.

    Who Is 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, 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?

    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 Should You Consider Lloyds for Your Equity Release or Lifetime Mortgage?

    Lloyds offers competitive rates and flexible options for equity release, making it a strong contender for lifetime mortgages.

    Why Consider Lloyds for Your Equity Release or Lifetime Mortgage?

    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 Equity Release Services Does Lloyds Bank 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 Costs Are Involved With Lloyds Equity Release?

    Costs include interest rates, application fees, and potential charges for early repayment, all tailored to fit individual financial situations.

    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 5.25% to 6.30%* 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 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 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.

    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.

    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 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.

    How Does Lloyds Compare With Other Equity Release Providers in the UK?

    Lloyds is competitive in its offerings, with diverse equity release plans that stand up well against other UK providers.

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

    To qualify for Lloyds Bank Equity Release, you must be at least 55 years old and own a property in the UK.

    The property must meet certain valuation criteria, usually starting from £70,000.

    Your eligibility also depends on your property’s condition and location, ensuring it aligns with Lloyds Bank’s lending criteria.

    Lloyds assesses your health and lifestyle factors, which could influence the amount you can release.

    If you have certain health conditions or lifestyle choices that are expected to reduce your lifespan, you might qualify for more funds.

    It’s a personalized approach to equity release, tailored to your individual circumstances.

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

    Lloyds Bank offers competitive interest rates and flexible repayment options that stand out in the equity release market.

    Compared to other providers, Lloyds often allows for larger lump sum releases or more favorable loan-to-value ratios.

    Their commitment to customer service and the provision of a no-negative-equity guarantee align with the best practices in the industry.

    However, it’s essential to compare the overall cost, as fees and interest rates vary.

    Each provider has unique features and benefits, so consider what matters most to you.

    Lloyds Bank’s strong reputation and comprehensive financial solutions make it a compelling choice for many.

    What Are the Predictions for Lloyds Bank Equity Release Rates?

    The predictions for Lloyds Bank Equity Release rates suggest stability with the potential for slight decreases in response to market conditions.

    As interest rates are influenced by the broader economic environment, including the Bank of England’s base rate, any changes here could affect equity release rates.

    Lloyds Bank continuously evaluates its equity release rates to remain competitive and provide value to customers.

    With the current trends, it’s a good time to consider equity release as a financial strategy, especially if you’re looking for a reliable lender with a solid track record.

    Stay informed on rate changes to make the most of your equity release plan.

    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 to discuss your needs and eligibility.

    After this initial meeting, a detailed property valuation is conducted.

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

    During this period, Lloyds works diligently to ensure a smooth process, keeping you informed at every step.

    Once everything is approved, and the paperwork is complete, the funds are released to you.

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

    How Can You Transfer Your Equity Release Plan to Lloyds Bank?

    Transferring your equity release plan to Lloyds Bank 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.

    Lloyds provides a seamless transition process, with their advisors guiding you every step of the way.

    The switch could offer you lower interest rates or more favorable terms, depending on your current plan.

    Lloyds’ team will handle the paperwork and liaise with your current provider, making the process as smooth as possible.

    It’s an opportunity to reassess your financial situation and potentially improve your equity release conditions.

    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’ 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.

    What Are Lloyds Bank 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

    How Can You Contact Lloyds for Equity Release Inquiries?

    Lloyds’ contact number is 0345 602 1997.

    Common Questions

    How Does Equity Release Work With Lloyds Bank?

    What Are the Current Rates for Lloyds Bank Equity Release?

    How to Apply for Equity Release Through Lloyds Bank?

    Are There Hidden Fees in Lloyds Bank Equity Release Plans?

    What Benefits Does Lloyds Offer for Equity Release Customers?

    Is Lloyds Bank a Certified Member of the Equity Release Council?

    Who Owns Lloyds?

    Does Lloyds Bank Provide Equity Release Services?

    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, 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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