It's Free to Speak to an Advisor, 7 days, 8am - 10pm

About the Author

Dan Osman

Head of Later Life at UK Moneyman Ltd.

Dan Osman

Dan joined the Financial Services sector back in 2002, but actually left the industry in 2008 before returning some years later. During the in-between years, he took a degree to become a Social Worker specialising in working with vulnerable adults.

Upon his return, Dan combined his experiences in the two sectors to become an Equity Release Specialist and he now heads up UK Moneyman’s Later Life Lending proposition. He genuinely believes in a holistic approach and always ensures his clients receive a proper consideration of all the options available, including non-lending alternatives to Equity Release.

Learn More

What is The Interest rate on Equity Release?

Lifetime Mortgage Interest Rates

An equity release mortgage is a loan secured on your property, therefore, there is an interest rate payable similar with a regular mortgage.

Due to the increased risk to the lender and the additional administration on the application, the interest rates on an equity release plan are usually slightly higher than on a traditional mortgage.

With an equity release mortgage, the interest rate that you pay on your initial lump sum of cash is usually fixed for life so you will not have an expiry product end date unlike a traditional mortgage product.

The interest rate that you will pay will depend on several factors, these include: 

It’s important not to get too focused on the interest rate, the features and flexibility with the equity release plan are equally important.

This is where seeking good independent mortgage advice will prove invaluable.  Getting the right product for you will save you a lot of time and money, mistakes can be costly without a professional by your side.

An experienced advisor will recommend the best equity release plan for you based on both the interest rate and will ensure the plan is right for your needs both now and in the foreseeable future.  

Minimising Equity Release Interest

In higher interest markets, equity release can be expensive therefore it’s important to seek independent mortgage advice in to save you money and to keep any interest payments to a minimum.

There are ways of minimising the amount of interest payable on an equity release mortgage, these include: 

With a drawdown lifetime mortgage, you can take an initial lump sum and then have an agreed fund for you to release money as and when required. When the funds are required in the future, these will be taken at the interest rate at the time you need to the money. This can work well if you do not need all the cash up front and will keep your interest payments to a minimum.  

  



About the Author

Dan Osman

Head of Later Life at UK Moneyman Ltd.

Dan Osman

Dan joined the Financial Services sector back in 2002, but actually left the industry in 2008 before returning some years later. During the in-between years, he took a degree to become a Social Worker specialising in working with vulnerable adults.

Upon his return, Dan combined his experiences in the two sectors to become an Equity Release Specialist and he now heads up UK Moneyman’s Later Life Lending proposition. He genuinely believes in a holistic approach and always ensures his clients receive a proper consideration of all the options available, including non-lending alternatives to Equity Release.

Learn More

Later Life Guides

Read more guides

UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

Equity Release Council LogoSolla Later Life Logo
Facebook Image X Logo Instagram Image YouTube Image LinkedIn Image SpotifyImage TikTok Image

Speak to an Advisor – It’s Free!
7 Days a Week, 8am – 10pm

Speak to an Advisor - It's free Enquire Online 0800 029 3757
We use cookies to enhance your customer experience. More detailsGot It