Lloyds Bank Equity Release & Lifetime Mortgages 2024

lloyds bank equity release

If you’re over the age of 55, there’s never been a better time to free up some extra money while safeguarding your finances and those of your loved ones. Lloyds and similar equity release schemes can provide access to the money tied up in your home and help you take advantage of its hidden value.

The UK economy is uncertain, yet over 225 plans are still worth considering. You can find competitive interest rates, good loan-to-value ratios and long-term safeguards that fit your needs even later in life.

And if you’re worried about how equity release might impact your estate, inheritance protection is available so you can pass on a portion of the value when the time comes. Regardless of the size of your loan, some part of it will stay protected for future generations to inherit.

Equity Release Features:

  • Equity release at 3.75%
  • Continue to live in your home and retain 100% ownership
  • You can still move home as Equity Release is transferable
  • No monthly payments unless you prefer interest-only
  • Protect a portion of your house value for your loved ones
  • Additional cash reserve facility if required

Please Enter Your Requirements Below:

Lloyds equity release awards
lloyds bank equity release rates

Does Lloyds do equity release?

Yes, Lloyds Bank does equity release.

What is Lloyds Bank equity release loan to value?

Lloyds equity release loan to value is 60%, and further advances are available subject to an additional valuation if your house price appreciates.

What are the current Lloyds equity release interest rates?

The current Lloyds Bank equity release interest rate is 3.75%, fixed for the life of the loan. Lloyds equity release is ideal for home improvements and enables you to make optional repayments.

What is a Lloyds lifetime mortgage?

Lloyds Bank lifetime mortgages are similar to Lloyds equity release. Lloyds lifetime mortgages have broad lending criteria and let you maintain your legal ownership of your own home.

Most lifetime mortgages expose you to property prices going up, and your increased home value could help offset the interest on the loan.

Does Lloyds Bank offer a free valuation for equity release?

Yes, with Lloyds equity release, your valuation is free.

Do Lloyds bank offer retirement interest only mortgages?

Yes, if you can afford a monthly payment, a Lloyds retirement interest only mortgage could be an ideal option. Your personal situation is key, and downsizing protection is included.

Please indicate your requirements by filling in the form below:

Equity Release

does lloyds do equity release

Lloyds Bank And Their Involvement In The Lifetime Mortgage Sector

How Equity Release Could Benefit Your Retirement Finances

All homeowners have various reasons to want to secure a homeowner loan. According to figures released in the 2018 Autumn report released by the Equity Release Council, most homeowners over the age of 55 choose to use drawdown income from equity release products to help fund their retirement years.

The advantage of drawdown is that you can borrow a smaller lump sum based on a percentage of your home equity and only pay interest on the money released, not the total amount your loan is approved for.

As an illustration:

If your home is valued at £150,000, and you can borrow a 30% LTV through a lifetime mortgage, you could be approved for a loan of £45,000.

Average interest rates at the end of 2018 were 5%, some lower, some slightly over the 5% interest rate. All equity release firms will offer two methods to get the money from your home’s worth.

  • As a one-off lump sum payment
  • Or as drawdown

Using the example above, if you were to be approved for a lifetime mortgage of £45,000, you could take that in whole or withdraw a smaller amount of £5,000 to £10,000 as a first payment and then use drawdown to release future payments as and when you need or want it.

On both types of equity releases, interest roll-up is used. This means you don’t need to repay anything towards the loan. Still, instead, the interest you would pay on a standard mortgage product is added to the loan amount and repaid to the lender when your home is sold following your passing or the passing of a surviving spouse.

With Lloyds Bank, equity release loans are available on standard residential mortgage products. The only major high-street lender to have entered into the equity release market is Nationwide. A few others have tried and withdrawn their products.

Most lenders offering lifetime mortgages are insurance firms such as Aviva or other niche specialist lenders such as Hodge Lifetime and More2Life.

How Lifetime Mortgages Differ from Home Equity Loans

Unlike standard mortgages that can run for a fixed term, lifetime mortgages do not expire. They remain in place for the rest of your and your partner’s life.

Some equity release companies will have staggered rates for early repayment charges, mostly starting at around 6% of the loan amount you’re approved for. This can result in high exit fees if you choose to repay all or part of the loan early.

As the name implies Lifetime Mortgages, are not intended to be repaid by you. They’re designed to remain in place for the rest of your life.

As the interest roll-up will substantially increase the cost of borrowing, all lenders who are voluntary members of the Equity Release Council will offer a no-negative equity guarantee. This ensures that no money will be owed if your home sells for under the market value the loan was approved for.

lloyds equity release mortgage options

The no negative equity guarantee is important for borrowers; however, just as important is to think about your future finances because a significant proportion of your home equity will be paid to the lender in interest charges. If you’ve planned to leave behind a nest egg for your kids based on the sale of the home, the amount left will be significantly less once the loan plus interest is repaid.

Several equity release companies allow a percentage of the loan to be repaid annually, mostly around 10% of the initial loan amount to be repaid each year without any early repayment charges being applied.

Another option a few equity release companies are offering is tiered rates for early repayment charges based on the length of time you have the loan in place.

During the first five years, early repayment fees are high. Some lenders lower these after 5 years, then again after ten years, and again after 15 years. By year 16, it can be possible to repay the loan amount entirely without incurring an early repayment penalty.

If you are planning to use equity release to fund your retirement but would like the option to build your equity back up, a number of plans are available from specialist lenders.


As the Financial Conduct Authority regulates all equity release schemes, homeowners must consult a financial advisor with a firm reference number for bespoke advice on equity release before an application can be made. Lenders cannot sell you a lifetime mortgage directly.

Access To Experts – The Right Type Of Equity Release That Is Increasingly Popular

We have experts on hand to walk you through the process of how equity release works and discuss alternative financing options for retirement, repayment methods (always optional), and the impact equity release can have on your future finances.

Should you feel equity release is suitable, we can conduct a whole market comparison to find the best lifetime mortgage products with all the guarantees you’d need and flexible repayment options where appropriate.

The only requirement for all equity release companies is that you’re a homeowner, approaching the end of your mortgage term, and over the age of 55. Some of the lenders we work with have upper age restrictions; however, retirement mortgages are available for homeowners over 90 years old.

What The Funds From Equity Release Can Be Used For Based On The Value Of Your Property

They can be used to pay for absolutely anything! The only stipulation is that if you have an existing mortgage in place, any equity released from your home must be used to repay the existing mortgage.

The rest of the money you can spend as you wish, for example to:

  • Treat yourself,
  • Treat your family,
  • Start home improvement projects that have been put off for too long
  • Pay the deposit on your son/daughter’s first mortgage
  • Upgrade your car

Or take a little here and there to help you fund your retirement years, enjoying life more comfortably, knowing there are funds available to withdraw if and when you need extra cash.

The choice will always be entirely in your hands whether you choose to withdraw some or all the equity up to the LTV limit offered by the lender. Most equity release companies approve finance on properties worth a minimum of £100,000, with a few lenders lowering the minimum home valuation to £70,000.

LTV ratios range from 10% to 54% LTV. The minimum you can borrow is £10,000, which can be taken as one lump sum or through drawdown up to an agreed limit.

Enhanced Lifetime Mortgages and equity release aged 55 plans are available for those with a health condition known to shorten life expectancy, which lets you borrow more at better rates.

Inheritance protection can be arranged to ensure that some of your home equity is reserved to leave to your loved ones. If you need this type of protection, the loan amount you’ll be eligible for will be lower.

With 1st UK, we can work with people nearing retirement and in retirement to arrange suitable finance options with the right lenders, offering the right features at affordable rates and with clear advice from the outset, keeping you in control.

Call our advisors today for a free, no-obligation discussion about how we can be of service to you.

There are many Plans For the Elderly and Pensioners, and you could consider Gifting Equity To Loved Ones or using Equity Release For Elderly Care.

The Pros and Cons of the types of equity release are discussed in-depth on the dedicated page.

What are common uses of the tax free lump sum?

People get an equity release lifetime mortgage to share property wealth with family members and loved ones who want to get on the property ladder with their principal residence instead of paying rent. People also get equity release mortgages for later life financial freedom to pay down loans, credit cards and other types of unsecured credit that may have mounted up.

An independent financial adviser can help you with an equity release calculator to find what tax-free cash you can release.

How much does Lloyds Bank equity release cost?

It could involve the following:

  • Specialist equity release adviser advice fees
  • Arrangement fees
  • Solicitors fees
  • A home valuation fee
  • Redemption penalties on your outstanding loan – early repayment charges

I Want To Buy A Holiday Home, And I Can’t Get A Regular Mortgage?

You can get Equity Release For Second Home Purchase if your home’s value is substantial enough to release money and you meet the minimum age requirement. You could also consider a reversion company for the extra money.

Big High Street Bank Equity Release Mortgage Providers

These include lenders like RBS, Santander and HSBC, who allow you to release tax-free cash from your home. They offer products to existing customers and new customers.

Long Established Equity Release Provider Options for 2024

If you are looking for an equity release product without an early repayment charge where your financial circumstances suit a drawdown lifetime mortgage, some of the best lenders to raise cash are LV, Pure Retirement, Aviva, Canada Life, Hodge and L&G.

Pensioner Mortgages And Specific Age Related Equity Release Options

Compound interest does not suit everyone. Some people prefer to make monthly repayments, relying on the sale proceeds to pay off the principal of the loan. Mortgages for pensioners, mortgages for the over 50’s and mortgages for those over 60 can have a very low overall cost.

Equity Release Lloyds Bank Advice Providers and Independent Legal Advice

When trying to work out if equity release is right for you, if you need to borrow money against the value of your home, you can get help with retirement planning with the help of companies like Just, Saga and Sunlife. The money is paid back when the last borrower dies or goes into long-term care.

I Am Looking For Lloyds Equity Release Under 55. Can This Be Done?

Yes, Equity Release Under 55 can be done, and it will be very popular in 2024, but it’s best to get it now before interest rates rise.

Are Lloyds bank retirement interest only mortgages competitive for 2024?

Yes, Lloyds bank retirement interest only mortgages have similar rates to lenders that lend to younger people.

Age-Related Products Based On Your Personal Circumstances Lasting 20 Years Or More

If you are not keen on leverage, looking for a cheap house for sale uk could be a solution so you can own your home outright.

Does Lloyds Bank do equity release?

Yes, Lloyds does no fee, low rate home equity release. Which banks do equity release is a widespread question in 2024.