RBS Equity Release And Lifetime Mortgage Review in 2024

Will RBS Be Able to Help You Release Equity From Your Home? Or Can It Offer a Better Alternative? Here Is Everything You Need to Know.
  • Last Updated: 02 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

  • RBS equity release allows homeowners over the age of 55 to unlock the value tied up in their property as a tax-free lump sum or additional income.
  • The pros include accessing tax-free cash and no monthly repayments, while the cons may involve decreasing your estate's value and potentially affecting your eligibility for means-tested benefits.
  • To qualify, you must be over 55 years old, a UK resident, and own a property worth at least £70,000.
  • Interest rates vary depending on individual circumstances and the specific plan chosen, with some rates as low as 2.5%.
  • Alternatives to RBS equity release include downsizing your home, utilizing a lifetime mortgage from a different lender, or considering a home reversion plan.

Have you been banking with the Royal Bank of Scotland (RBS) since you can remember? 

Are you ready to jump onto the equity release train and are wondering whether RBS can help you do it? 

With many retirees turning to equity release, you have every reason to be curious about this means of accessing cash from your home. 

The question is, can RBS help you do it?

In This Article, You Will Discover:

    We have spent endless hours gathering the latest brand information with multiple expert consultations and a detailed review of leading brands in the industry.

    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 RBS. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by RBS.

    Who Is RBS?

    RBS, or Royal Bank of Scotland, is a major banking institution in the UK, offering a wide range of financial services including mortgages and loans.

    Known for its long history, RBS has established a strong presence in the financial sector.

    Unique for its Scottish heritage, RBS has expanded its influence, serving millions across the UK and beyond.

    Their commitment to financial solutions, including for seniors, marks them as a significant player in the banking world.

    What is House Equity Release?

    House equity release is an umbrella term for a later-life mortgage that allows you to unlock equity from your property while remaining in your home.

    While there are plans with an optional loan or interest repayments, both are only due when you pass away or move to a long-term care facility.

    The amount is usually covered by the sale of the home.

    What Are the Features of RBS Equity Release?

    RBS Equity Release is a type of mortgage product that allows homeowners aged 55 and over to unlock the wealth tied up in their property without having to sell or move out.

    Its key features include a tax-free lump sum or regular smaller cash releases, no negative equity guarantee, and the flexibility to choose whether to pay the interest or let it roll-up.

    RBS offers retirees financial freedom while ensuring they continue to own their home.

    Additionally, RBS Equity Release has a feature allowing partial or full repayment options, giving homeowners the chance to manage their future interest.

    In a unique twist, RBS offers an 'inheritance protection' feature, which allows you to safeguard a portion of your home's value for your loved ones' inheritance.

    These features make RBS Equity Release a comprehensive and flexible financial solution for the older generation seeking to enhance their retirement income.

    How Does Equity Release and Lifetime Mortgage Work?

    If you (and your spouse) are 55 or older, you may qualify for an equity release loan.

    The age of the youngest homeowner will be considered. Furthermore, some schemes require you to be 60 or 65.

    You may qualify to release equity from a house if you own a home in the UK that is valued at £70,000 or more.

    Does RBS Have an Equity Release Calculator?

    No, RBS does not have an equity release calculator.

    Why not use our calculator below to see approximately how much equity you could release from your home?

    How Did We Review the Information on RBS?

    In reviewing RBS' information, we looked into it's history, the plans it offers, and it's rates and fees.

    NOTE: This article is an unaffiliated, independent, third-party, review of RBS.

    RBS Customer Reviews

    RBS Complaints

    If you are dissatisfied with your experience and want to file a complaint, the easiest way to do so is to contact them directly through their website.

    They are concerned about their clients' needs and will refer you to the appropriate department.

    Alternatively, you can submit a review on a review site like Trustpilot or Feefo, and they will swiftly contact you to assist.

    RBS Interest Rates

    RBS offers a range of mortgage and remortgage schemes, each with different interest rate options from fixed rates to interest-only rates.

    The type of scheme you select will affect the interest rates offered by RBS.

    If you are specifically interested in equity release, then depending on your situation, equity release interest rates can range from 5.20% to 6.30%* (AER).

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

    What Are RBS' Fees?

    RBS does not charge any fees for it's services however, there may be fees related to a particular product, in which case RBS will advise you accordingly.

    Equity Release Types

    There are two equity release options available on the market.

    • Lifetime mortgage: A mortgage secured on your property (provided it is your main residence), while retaining ownership.
    • Home reversion: This is where you sell part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living on the property until you pass away, but you must agree to maintain and insure it.

    The Most Popular Equity Release Uses

    • Gaining access to tax-free cash to supplement retirement income.
    • Paying off a mortgage, debts, or loans.
    • Giving money to family members and children who may need an income boost.
    • Taking a dream trip.
    • Buying the car of one’s dreams.
    • Renovating one’s home or garden, which also should increase the property value.

    What You MUST Know About the Providers We Compare

    • They have helped more than 1mln people decide who to turn to when releasing equity from their homes.
    • They have been responsible for organising one in three plans that the Equity Release Council supervise.

    FCA Details

    Regulators

    • Financial Conduct Authority (FCA)1
    • Prudential Regulation Authority (PRA)2

    Registration Numbers

    • FCA Ref Number: 114724
    • Companies House Number: SC083026

    FCA and Companies House Link

    RBS Contact Number and Address

    • +44 345 724 2424
    • info@rbs.co.uk
    • 36, St. Andrew Square, Edinburgh, Midlothian, EH2 2YB.

    Common Questions

    How Does RBS Equity Release Work?

    What Are the Pros and Cons of RBS Equity Release?

    Can I Qualify for RBS Equity Release?

    What Are the Interest Rates for RBS Equity Release?

    Are There Alternatives to RBS Equity Release?

    Is RBS a Member of the Equity Release Council?

    Who Owns RBS?

    Looking For a Job at RBS?

    Does RBS Offer Equity Release?

    Is RBS Safe?

    In Conclusion

    If you are considering RBS as a banking or lending provider, we hope you have found this review helpful.

    RBS is one of the largest banks in the UK and also has a huge global presence.

    Although RBS does not offer equity release, it may have an alternative worth considering.

    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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