Santander Equity Release And Lifetime Mortgage Review in 2024

Thinking About Unlocking Capital With Santander Equity Release? Unsure What Your Options Are? Find Out How the Santander and Legal and General Partnership Works and Learn About the Features of Santander’s L&G Lifetime Mortgage. Read On…
  • 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

  • The process of Santander equity release typically involves an initial consultation, application submission, property valuation, legal review, and funds release upon approval.
  • Their equity release scheme is considered safe due to its adherence to the equity release Council's standards and regulations.
  • Their interest rates vary, typically ranging from 5.20% to 6.30%, depending on your circumstances and the current market conditions.
  • To qualify, you need to be a UK homeowner over the age of 55 with a house worth at least £70,000.
  • You can repay your Santander equity release early, but this may incur an early repayment charge depending on the terms of your agreement.

If you have been wondering about Santander equity release, you may be interested to find out that this bank has made provision for later-life lending.

Thanks to it's agreement with Legal & General, Santander can offer you a way to pay off your existing mortgage or benefit from your home equity using an equity release product.

In This Article, You Will Discover:

    The team at Every Investor combed through all the latest news on Santander's equity release offering to compile this handy, easy-to-read guide.

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

    Who Is Santander?

    Santander is a retail and commercial bank that has been operating in the UK since 2004 as a wholly-owned subsidiary of Banco Santander, a prominent worldwide bank.1

    What Exactly Is Equity Release?

    For homeowners aged 55+, equity release is a means to convert home equity into cash, bypassing the need to sell.

    This provides a financial boost from your property's worth. A key feature of equity release is the repayment approach.

    The debt, including interest, is settled from the home's sale, generally after the homeowner's passing or entry into care, differentiating it from traditional loans.

    Read More: What's Equity Release?

    What Is the Process for Applying for a Santander Equity Release?

    The process for applying for a Santander Equity Release begins with understanding the product and what it involves.

    The equity release, a loan type secured against your property, is designed for homeowners aged 55 and over, providing funds without needing to move.

    Santander offers two forms: lifetime mortgage and home reversion, so it's crucial to consider which best suits your financial circumstance.

    Once you've decided on the type of equity release, you'll start the application process.

    Contact a Santander adviser and arrange a consultation meeting.

    During this meeting, you'll discuss your financial situation, the value of your property, and the amount you wish to release.

    After your application is submitted, Santander will conduct a property valuation to determine the maximum amount you can release.

    The entire process typically takes 6-8 weeks, ensuring you access the required funds quickly and efficiently.

    Does Santander Offer Equity Release Products?

    Santander does not offer equity release products directly, but the bank has partnered with Legal & General, who provides equity release products to Santander's clients.2

    The Santander and Legal & General equity release partnership began in 2016 and was renewed for a further five years in 2021.3 

    Santander's L&G Lifetime Mortgage

    Santander's L&G Lifetime Mortgage can be used to repay an existing Interest-Only mortgage or to benefit from your home's value without having to move out.

    Some of the features of this plan:

    • Minimum age of eligibility: 55
    • Minimum amount you can borrow: £10,000
    • Interest rate: Fixed for life
    • Interest payments: Not mandatory, but optional payments are allowed.4

    The Advantages of Equity Release With Santander

    The advantages of equity release with Santander include the fact that the lifetime mortgage on offer is provided by Legal & General, an award-winning equity release firm.5

    Other pros include:

    • Access to tax-free lump sums
    • No mandatory monthly repayments
    • Optional interest and capital repayments
    • Optional Inheritance Protection
    • The freedom to move house.6

    The Drawbacks of Equity Release With Santander

    The drawbacks of equity release with Santander correspond to the general disadvantages and risks associated with equity release lifetime mortgages.

    These include, (but are not limited to), the following:

    • Equity release will reduce the inheritance you leave behind.
    • Your means-tested benefits may be affected if you take out an equity release loan.
    • Equity release can be an expensive way to borrow.
    • If you do not make interest repayments, your loan will accrue compound interest and your total debt will increase substantially.
    • You may have to pay high Early Repayment Charges if you decide to end your lifetime mortgage early.7

    Does Santander Have an Equity Release Calculator?

    Santander has an equity release calculator that is accessible on the Legal & General website.8

    You could also use our calculator below to obtain an approximation of how much you may be able to borrow through equity release.

    Santander's Equity Release or Lifetime Mortgage Interest Rates

    Santander's equity release interest rates are determined by Legal & General, the firm that provides the lifetime mortgage product in question to Santander's clients.

    If you would like to receive an illustration of the rate you may expect, contact Santander and ask to speak to a later-life lending advisor.

    Generally speaking, lifetime mortgage rates currently start at 6.08%*.

    *Accurate as of 23/08/2023. While we make every effort to keep our information current, rates may have changed since our last update.

    Santander's Equity Release Fees

    Santander's equity release fees may include an application fee.

    Some providers provide free valuations, so ask your equity release advisor about this.

    In general, equity release fees may amount to between £1,500 and £3,000, but this varies depending on the provider.9

    How Did We Review the Information on Santander?

    We reviewed the information on Santander by considering the bank's lifetime mortgage offering, which is provided by Legal & General.

    Santander Customer Reviews

    Santander customer reviews could help you find out what other clients have to say about Santander.

    Find reviews on the following sites:

    Santander Complaints

    If you are dissatisfied with your experience and want to file a complaint, the easiest way to do so would be to contact the bank directly through its Support page.

    Alternatively, you could submit a review on a site like Trustpilot or Feefo, and Santander may contact you to assist.

    Should Santander Customers Switch to Equity Release?

    Whether Santander customers should switch to equity release will always depend on their unique circumstances.

    Always seek out equity release mortgage advice from your financial advisor.

    While equity release can have real benefits, it is a big decision, and careful consideration of all the potential pitfalls is crucial.

    Regulatory Details

    Santander is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA).10 11

    FCA-Permitted Services

    • Insurance
    • Investments
    • Other Services

    Registration Numbers

    FCA and Companies House Link

    Santander Contact Number

    • 0800 068 6064
    • consumerservice@santander.co.uk
    • 2, Triton Square, Regent’s Place, London, NW1 3AN.

    Common Questions

    What Is the Process of Santander Equity Release?

    How Safe Is Santander's Equity Release Scheme?

    What Are the Interest Rates for Santander Equity Release?

    How Can I Qualify for Santander Equity Release?

    Can I Repay My Santander Equity Release Early?

    Is Santander a Member of the Equity Release Council?

    Who Owns Santander?

    Can I Apply for a Job at Santander?

    Does Santander Offer Equity Release?

    Is Santander Safe?

    In Conclusion

    Equity release could be an option if you are looking for a way to repay your Interest-Only mortgage, or simply if you would like to benefit from the value of your home during retirement.

    While lifetime mortgages provide many benefits, they also carry real risks and drawbacks that need to be discussed with a qualified equity release advisor, who can also help you determine which is the best equity release company for you.

    If you are considering Santander equity release, contact the bank's later-life lending department to discuss Santander's L&G lifetime mortgage.

    The features mentioned and the amounts raised are subject to the lender’s criteria and terms and conditions. Lenders may take into account 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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