Standard Life Equity Release & Lifetime Mortgage Review in 2024

Can a Standard Life Equity Release Plan Get You the Tax-Free Cash You have Been Looking For? Can It Fund Your Retirement or Get You On That Dream Holiday? Find Out if It Is the Answer to Your Financial Challenges in Retirement.
  • 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

  • Standard Life equity release is a financial product that allows homeowners aged 55 and above to unlock the value tied up in their property without having to sell or move out.
  • This scheme works by providing a tax-free lump sum or regular smaller sums, with the amount plus interest repaid when the property is sold, typically following death or moving into long-term care.
  • Safety is underpinned by robust regulations from the Financial Conduct Authority, mandatory advice from a qualified adviser, and membership in the equity release Council.
  • Benefits include enhancing retirement finances, offering flexible payment options, and assurance of no negative equity guarantee, ensuring you never owe more than the value of your home.
  • While it's possible to repay early, it's crucial to know that early repayment may incur a substantial early repayment charge.

Equity release is on the rise amongst those reaching retirement in the UK, and it is no surprise considering the benefits.  

Could Standard Life be the provider to help you achieve that? 

In This Article, You Will Discover:

    Equity release is already a complex decision without needing to wade through the many plans available on the market. 

    Where do you start? What plan do you choose, and which provider do you settle on?

    Our team of expert researchers has tirelessly reviewed the equity release market to provide you with the information you need to make these decisions. 

    Could Standard Life be your equity home release solution? 

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

    Who Is Standard Life?

    Founded in 18251, Standard Life is a life insurance, pensions, and long-term savings company in the UK. 

    In 2018 the ‘Standard Life Brand’ was acquired by the Phoenix Group2, UK's most prominent long-term savings and retirement company. 

    Today it offers pensions, retirement, and investment solutions across the UK, Ireland, Germany, and Austria. 

    Standard Life Home Finance has partnered with Key Group to offer it's clients innovative and flexible lifetime mortgage solutions. 

    What Is Equity Release For Over 55s?

    Homeowners aged 55+ can use equity release to access the value in their homes for immediate financial benefit, without relocating.

    It's a way to liquidate part of your property's worth.

    What sets equity release apart is its repayment plan; the debt, including interest, is settled from your home's sale, usually after significant life events like death or moving into care.

    Read More: Equity Release Over 55

    What Are the Features of Standard Life Equity Release?

    As seasoned experts in the field of equity release, we understand that Standard Life Equity Release provides several noteworthy features.

    The plan allows homeowners aged 55 and above to unlock tax-free cash tied up in their property without having to move.

    Furthermore, with Standard Life, you have the flexibility to release equity in a lump sum or smaller amounts over time.

    Importantly, Standard Life Equity Release is regulated by the Financial Conduct Authority, ensuring a secure and reliable service.

    Another unique feature of Standard Life Equity Release is the 'No Negative Equity Guarantee'.

    This ensures that you will never owe more than the value of your home, thereby protecting your estate from incurring debt.

    Also, interest rates are fixed for life, giving you predictability and peace of mind.

    Moreover, Standard Life offers an optional inheritance protection feature, allowing you to safeguard a percentage of your property's value for your beneficiaries.

    Thus, Standard Life Equity Release provides a flexible, secure and considerate approach to releasing equity.

    Why Should You Consider Using Standard Life?

    You should consider using Standard Life as your equity release provider because:

    • It is members of the Equity Release Council3.
    • It is authorised and regulated in the UK by the Financial Conduct Authority4.
    • It offers competitive interest rates. 
    • It considers flexibility a key feature of it's lifetime mortgages. 

    What Services Does Standard Life Offer?

    Standard Life offers services that include lifetime mortgages, pension schemes, and more. 

    A complete list of the services it offers:

    • Pensions
    • Retirement Solutions
    • Investment Solutions

    Does Standard Life Offer Equity Release or Lifetime Mortgages?

    Yes, Standard Life offers equity release in the form of lifetime mortgages.

    Standard Life’s Equity Release Schemes

    Standard Life’s equity release schemes are called Horizon.

    It offers a fee-free and a paid-fee plan, both of which are lifetime mortgages. 

    Standard Life’s Equity Release Scheme Features

    Standard Life’s equity release scheme features include:

    • Fixed early repayment charges5 for eight years, after which they fall away. 
    • The option of making partial repayments from the start.
    • Guaranteed inheritance protection.
    • Downsizing protection.
    • Exemption from early repayment charges in the case of one partner’s death.
    • Lump sum and drawdown options.
    • Typical loan amounts between £10,000 and £1mln.
    • No-negative equity guarantee.

    What Are Standard Life’s Equity Release Interest Rates?

    Standard Life’s equity release interest rates range from 5.20% to 6.30%* APR6.

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

    What Are Standard Life’s Fees?

    Standard Life imposes a £995 arrangement fee on their lifetime mortgages*. 

    Other fees that are applicable when setting up your mortgage include:

    • Valuation Fee - Free on Standard Life lifetime mortgages and are valid for six months.
    • Solicitors Fee - estimated at £510 but would need to be paid by you directly to your chosen solicitor*. 

    If you make changes to your lifetime mortgage, the following fees could apply:

    • Further lending arrangement fee
    • Moving home (arrangement fee) — £500* 
    • Changes in borrowers 
    • Transfer of equity
    • Part sale of land (admin fee) — £100*
    • Unpaid ground rent / service charges (admin fee) — £100*

    Should you wish to make any repayments during the life of your loan, you could be liable for a partial repayment fee.  

    Partial repayments of 10% of your initial loan can usually be made within each twelve-month period*.

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

    Does Standard Life Have An Equity Release Calculator?

    Yes, Standard Life has an equity release calculator on their website

    For an unbiased result, you can also access our simple-to-use equity release calculator to obtain an approximation of the cash you could release from your home. 

    What Are the Advantages and Disadvantages of Standard Life

    The advantages and disadvantages of Standard Life are it offers competitive lifetime mortgages but they could affect your eligibility for benefits. 

    A closer look: 

    Standard Life Pros

    The pros of securing a lifetime mortgage with Standard Life include:

    • The plan options include a fee-paid or a fee-free option.
    • It's interest rates are very competitive.
    • It offers flexible LTV options.
    • Guaranteed inheritance protection is automatically included. 
    • Downsizing protection is included.
    • Early repayment fees fall away after eight years. 

    Standard Life Cons

    As with most decisions in life, there are cons that need to be considered.

    In this case, they are:

    • The negative effect a lifetime mortgage will have on your home’s value.
    • Equity release can affect your eligibility for state benefits. 
    • Equity release reduces the amount you can pass on to your heirs.
    • Compound interest can easily double your loan if no repayments are made. 
    • Once you have taken out an equity release plan, no other borrowing can be taken out using your home as security.
    • Equity Release may not be suitable for everyone, which is why your advisor will ask you to consider other options before proceeding.

    How Did We Review the Information On Standard Life?

    Our team of professional researchers gathered all current information on Standard Life Home Finance to compile this review.

    Note: This article is an unaffiliated, independent review of Standard Life. 

    Standard Life Customer Reviews

    Standard Life reviews online are relatively poor, with communication and clarity of information being their biggest complaints. 

    It has received a 1.8 out of 5 star review based on 190+ reviews. 

    Standard Life Complaints

    Standard Life complaints can be lodged directly on it's website or via email or phone. 

    As a company, it prides itself on offering customer-focused support and precise information and will do its utmost to resolve any complaints in a timely manner. 

    Standard Life FCA Details

    Address:

    Standard Life House, 30, Lothian Road, Edinburgh, Midlothian, EH1 2DH, UK.

    Trading Names 

    • Standard Life Assurance Limited
    • Standard Life Savings Limited
    • Standard Life Pension Funds Limited
    • Standard Life Lifetime Mortgages Limited

    FCA Permitted Services

    • Mortgages and home finance
    • Investments

    Regulators

    Standard Life is regulated by the Financial Conduct Authority.

    Registration Numbers 

    • FCA ref number: 310206
    • Companies House number: SC193441

    Standard Life Contact Number

    The Standard Life lifetime contact number is
    0800 188 4815.

    Common Questions

    What Is Standard Life Equity Release?

    How Does Standard Life Equity Release Work?

    Is Standard Life Equity Release Safe?

    What Are the Benefits of Standard Life Equity Release?

    Can I Pay Back Standard Life Equity Release Early?

    Is Standard Life a Member of the Equity Release Council?

    Who Owns Standard Life?

    Standard Life Jobs

    Does Standard Life Offer Equity Release?

    Is Standard Life Equity Release Safe?

    In Conclusion

    Standard Life offers flexibility, competitive rates, and valuable extras on their plans. 

    Settling on an equity release provider can be difficult, even when you have all the necessary information. 

    For this reason, it is vital that you seek the guidance of an experienced equity release advisor. 

    Your equity release advisor can compare Standard Life's equity release products to others on the market to determine whether it is the best equity release provider for your situation.

    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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