4.12% APR Fixed Equity Release Lifetime Mortgage And Mortgages For Over 60s
- Free, no-obligation home valuation
- Loan-to-value available up to 65%, subject to property and personal circumstances
- No lender, broker or adviser fees
- 4.12% fixed rate for plans with or without monthly interest payments
- Often used to clear an existing mortgage
- No upper age limit, fixed end date or set mortgage term
- Can be used for family gifting, tax planning or retirement income
- Payment holidays may be available on plans with monthly payments
- Fee-free further advances may be available, subject to a new valuation
Complete the form below for a personalised quote and home valuation
Later-life mortgage and equity release choices
Several banks, building societies and specialist lenders now provide later-life borrowing options, including RIO mortgages and lifetime mortgages. Depending on age, income, property value and whether monthly payments are affordable, borrowers may also compare providers such as Sun Life, Saga, RBS, Pure Retirement, Nationwide, Lloyds Bank and HSBC.
A Santander-style lifetime mortgage can appeal to homeowners who want a fixed rate, no lender fees and the option to release cash without setting a fixed mortgage end date. It is often considered by people who want to clear an existing mortgage, help family with a deposit, or keep more control over retirement borrowing.
If monthly interest payments are affordable, a retirement interest-only mortgage may also be worth considering. If monthly payments are not suitable, a lifetime mortgage may be more practical because the interest can roll up rather than be paid each month.
Valuation and calculator results
A formal offer normally depends on a regulated third-party valuation of your home. The valuation helps confirm how much can be borrowed and whether the property meets the lender’s requirements. Flats and leasehold homes can be considered, although lease length, property condition and marketability still matter.
When you use the Santander equity release calculator, you put in your personal details and the details of your home, and it will tell you the following:
- The maximum amount you may be able to borrow
- The fixed rate available for the product
- The monthly interest payment if you are looking at a RIO mortgage
- The estimated remaining equity in your home at certain points
- A guide to how rolled-up interest could affect the balance over time
Rates, fees and repayments
The lifetime mortgage rate shown is 4.12% fixed for life. The product has no upper age limit, no fixed end date and no set mortgage term. A retirement interest-only version may also use a fixed rate, but the borrower must be able to afford the monthly interest payment for life.
With a standard repayment mortgage, you gradually repay the capital and interest. With a retirement interest-only mortgage, the monthly payment covers only interest, and the property sale usually repays the original loan. With a lifetime mortgage, monthly payments are not compulsory unless you choose a payment option.
No early repayment charges are shown for this product, so you may be able to repay the loan if you sell your home or decide to move. A move is still subject to the new property meeting the lender’s requirements and a fresh loan-to-value assessment.
There are no lender, product, adviser or broker fees shown. The main separate cost is usually your solicitor’s fee, as you still need legal representation before completing a lifetime mortgage or RIO mortgage.
The application is not just a rate check. The lender will look at the property owners, the current mortgage balance, the property type, age, income position, and the amount of equity being released. For a RIO mortgage, income checks carry more weight because the monthly interest payment must remain affordable.
For a lifetime mortgage, the focus is slightly different. The lender still wants a suitable property and a sensible loan-to-value, but there may be no need to prove that you can support a monthly payment if you choose the roll-up option. That can make it useful where retirement income is limited, but the trade-off is that the interest can compound if nothing is repaid.
Why do people release equity later in life?
One common reason for later-life borrowing is family support. Parents and grandparents often want to help children with a house deposit, particularly where high loan-to-value mortgages are expensive or hard to access. Others use the money to repay an interest-only mortgage, improve their home, adapt the property for later life, or add a cash reserve.
The important point is affordability and long-term suitability. A RIO mortgage requires a reliable income to make monthly payments. A lifetime mortgage may avoid monthly payments, but the balance can grow if the interest is allowed to roll up.
Before releasing equity to a family member, it is worth clarifying the purpose of the gift and whether the money is a gift or a loan. Families sometimes treat this casually, but it can matter later if care costs, inheritance planning or other beneficiaries are involved.
Home improvements can also be a sensible use of released equity, particularly if the work makes the property safer, warmer or easier to live in. Cosmetic spending is more of a personal choice, so the cost of borrowing should be weighed against the value it adds to everyday life.
Other providers to compare
If the figures do not work, other later-life lending options may be worth comparing. These include Aviva, Just, LV=, Key and Hodge. The right provider will depend on age, health, property type, required loan size and whether you want to make payments.
Age, affordability and suitability
There is no upper age limit for the retirement mortgage option, but all property owners must usually be at least 55 at the time of application. If you are under 55, an income-based mortgage or other later-life product may be more relevant.
Affordability matters most where monthly payments are compulsory. The lender needs to see that your income is reliable and likely to continue. Pension income, investment income and other regular income may be reviewed as part of the assessment.
Equity release can reduce the value of your estate and may affect means-tested benefits. You should take advice before committing, especially if you plan to gift money, repay an existing mortgage or rely on the property value for future care costs.
Registered Office: 2 Triton Square, Regent’s Place, London, NW1 3AN, United Kingdom.
Registered Number 2294747. Registered in England and Wales.
Santander is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
The Santander Financial Services Register number is 106054. You can check this on the Financial Services Register by visiting the FCA website, www.fca.org.uk/register.
