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Equity release interest rates and costs
Equity release interest rates are usually fixed for life and depend on your age, the share of the home borrowed, the plan type and the lender. See what moves the rate and the other costs to compare.
Reviewed by David Sampson, Founder & Director · Created 20 Oct 26
Equity Release mortgage rates
Rate data coming soon. A broker can quote current pricing for your case.
| Product | Initial Rate | Type | Initial Term | Revert Rate |
|---|---|---|---|---|
| 2 Year Fixed | TBC | Fixed | 24 months | TBC |
| 5 Year Fixed | TBC | Fixed | 60 months | TBC |
| Tracker | TBC | Variable | 24 months | TBC |
Live rates coming soon
TL;DR
- •Main drivers: Age, loan-to-value and plan type
- •Pricing: Usually fixed for life
- •Live rates: Ask an adviser for a dated illustration
What moves equity release interest rates
Equity release interest rates move with the lender's funding costs, which track long-term market rates, and with the share of the home's value you borrow. Borrowing a smaller share usually attracts a lower rate, and plan features, health and the type of property also play a part, so two people of the same age can be offered different rates.
Most lifetime mortgage rates are fixed for the life of the plan, so the rate taken out is the rate paid. Some plans offer a variable rate with a lifetime cap instead.
A lower rate with higher fees can cost more over a short plan, and the reverse over a long one, so the headline rate alone does not show which costs less.
What lenders check when pricing equity release
Lenders price equity release on how much they lend against the home and how long the plan is expected to run. The checks fall into two groups: the borrower and the plan, and the property, and together they set the rate and the amount a lender will offer.
Borrower and plan
- Age of the youngest borrower.
- Share of the value borrowed.
- Lump sum or drawdown.
- Health for enhanced plans.
Property
- Value.
- Type and construction.
- Tenure and lease length.
- Condition.
Equity release fees to set against the rate
Fees can change which equity release plan costs least, especially on smaller amounts. Lenders charge some or all of the fees below, and some pay or refund the valuation. Adding them up for each plan, with the interest that will roll up over time, gives a fairer comparison than the rate alone.
| Fee | What it covers | Typical range | Note |
|---|---|---|---|
| Advice fee | Charged by the adviser for regulated advice. | Varies by firm | Explained before any work starts |
| Arrangement fee | Charged by the lender for the plan. | Varies by plan | Can often be added to the loan |
| Valuation fee | For the lender's valuation of the home. | Varies by property | Sometimes paid by the lender |
| Legal fees | For your own solicitor's independent advice. | Varies by firm | Required by Council standards |
| Early repayment charge | Charged if the plan is repaid early in full. | Set in the plan terms | Often waived on death or a move into care |
How to compare equity release costs
Compare equity release plans on the total owed over time, including rolled-up interest, the fees, the features and the early repayment terms. Because interest compounds, a small difference in rate can make a large difference after many years, so illustrations at the same amount from several lenders give the clearest like-for-like view.
The equity release calculator shows how a balance can grow from the amount, rate and period entered, before speaking to an adviser.
Equity release rate FAQs
Are equity release interest rates fixed?
Usually, yes. Most lifetime mortgage rates are fixed for life.
Why are equity release rates higher than mortgage rates?
The loan has no end date and the lender carries more risk.
How does rolled-up interest work?
Interest is added to the loan and is then charged interest itself.
What fees come with equity release?
Advice, arrangement, valuation and legal fees are common.
Will equity release interest rates fall?
Rates move with funding costs, so they can rise or fall over time.
How do I compare equity release rates?
Compare the total owed over time, including fees and plan features.
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Important: Your home may be repossessed if you do not keep up repayments on your mortgage. Information on this page is for general guidance only and does not constitute financial advice.Always verify details directly and seek independent advice before making financial decisions.