Equity release is now a mainstream option for homeowners aged 55 and above in the UK. In the third quarter of 2023, the average lump sum released was £94,806, according to the Equity Release Council’s Q3 2023 market statistics¹.

This figure underscores the role of lifetime mortgages as a significant route to supplement retirement funds.

Not all providers deliver the same value. Differences in interest rates, drawdown versus lump sum options, early repayment charges, and customer support can significantly impact the overall cost and suitability of a plan.

This guide presents a clear comparison of the UK’s leading lifetime mortgage providers, focusing on terms, flexibility, and consumer protections to assist you in making an informed and confident decision.

Let’s explore your top choices for securing a comfortable retirement...

Who Are the Best Lifetime Mortgage Providers in the UK?

The leading lifetime mortgage providers in the UK are distinguished by competitive interest rates, flexible product options, and strong regulatory compliance.

All providers listed below are authorised by the Financial Conduct Authority and are members of the Equity Release Council, which ensures consumer protections such as a no-negative-equity guarantee and fixed early repayment charge structures.

Aviva

Aviva is widely regarded as a market leader in the equity release sector, known for combining competitive rates with robust consumer protections.

Its two core products, Lifestyle Lump Sum Max and Lifestyle Flexible Option, offer flexibility depending on whether a borrower prefers a large one-off payment or staged access to funds.

The Flexible Option includes a reserve facility that limits interest build-up by allowing funds to be drawn in smaller amounts when needed.

Borrowers can repay up to 10% of the loan annually without penalty, and features like downsizing protection (after three years) and an inheritance guarantee offer added flexibility for long-term planning².

Legal & General Home Finance

Legal & General offers a broad suite of lifetime mortgage products, including the Flexible, Optional Payment, and Income Lifetime Mortgage.

These options cater to a variety of retirement income strategies, whether borrowers prefer to roll up interest, make voluntary interest payments, or receive a regular monthly income.

The lender also offers enhanced terms for those with qualifying health conditions.

Legal & General is consistently recognised for its high standards in customer support and adviser services, making it a strong choice for those seeking both financial flexibility and service reliability.

More2Life

More2Life has built its reputation on customisation and innovation, offering a range of lifetime mortgage plans designed to reflect individual borrower needs.

Its products are tailored to factors such as age, health status, and property type.

Features include drawdown options, health-based underwriting, and fixed early repayment charge structures.

More2Life was shortlisted for Best Lifetime Mortgage Provider at the 2025 Later Life Lending Awards, reinforcing its industry standing as a flexible and service-focused lender.

Pure Retirement

Pure Retirement focuses exclusively on lifetime mortgages and has issued over £2 billion in lending as of May 2025³.

It offers two main product lines: the Sovereign range for standard LTVs and the Max range for higher LTVs.

Interest rates currently start at around 6.26%, depending on borrower profile and adviser network⁴.

Pure Retirement distinguishes itself through incentives like cashback on loans over £20,000, free property valuations, and a broad property eligibility policy, making it particularly attractive for those with non-standard properties or seeking added value.

Lifetime Mortgage Provider Comparison

Provider	Plan Types	Voluntary Repayments	Drawdown Option	Interest Rate (Est.)	Minimum Age	ERC Cap	Notable Features
Aviva	Lump Sum, Flexible Drawdown	Up to 10% per year	Yes	~5.90% – 6.30%	55	Yes	Inheritance guarantee, downsizing protection
Legal & General	Flexible, Optional Payment, Income	Optional interest payments	Yes	~6.00% – 6.40%	55	Yes	Health-enhanced terms, income mortgage option
More2Life	Standard and Enhanced Plans	Yes (varies by plan)	Yes	~6.10% – 6.45%	55	Yes	Health and lifestyle underwriting
Pure Retirement	Sovereign, Max (high LTV)	Yes	Yes	~6.26% (May 2025)¹	55	Yes	Cashback offers, broad property acceptance

Rates are indicative and depend on age, property value, loan amount, and health eligibility. Always consult a qualified equity release adviser before proceeding.

How Do Top Providers Compare on Rates and Features?

Choosing the right lifetime mortgage provider requires more than comparing interest rates.

Top providers differ in how much they allow you to borrow, the repayment flexibility they offer, and the overall cost of the product.

Understanding these differences is essential for selecting a plan that matches both your financial goals and your lifestyle in retirement.

Interest Rates

Interest rates on lifetime mortgages typically range between 5.9% and 6.5% as of mid-2025, depending on your age, loan amount, health, and property value⁵.

Fixed rates are most common, but some products may include capped variable options.

A lower rate reduces the long-term cost of borrowing, especially for rolled-up interest plans.

Loan-to-Value (LTV)

LTV ratios determine how much of your home's value you can borrow.

Most providers offer between 20% and 55%, depending on your age and health⁶.

Enhanced lifetime mortgage plans, available to applicants with qualifying health conditions, may offer higher LTVs.

Withdrawal Flexibility

Some plans allow for drawdown facilities, where funds are released in stages instead of a single lump sum.

This can reduce interest accumulation, as you only pay interest on the amount actually withdrawn.

Aviva, Legal & General, and Pure Retirement all offer drawdown options.

Repayment Flexibility

Leading providers typically allow voluntary repayments of up to 10% of the original loan amount per year without early repayment charges.

This feature helps borrowers manage the total debt over time without committing to regular monthly payments.

Early Repayment Charges (ERCs)

ERCs vary significantly. Some providers apply fixed-term charges that reduce over time (e.g. 10% in year one, 1% by year ten), while others use variable formulas based on gilt rates.

Always check whether a provider offers ERC exemptions for specific events like death of a partner or downsizing after a qualifying period.

Consumer Protection

All top providers listed in this guide are members of the Equity Release Council, which means they adhere to key safeguards, including:

• No negative equity guarantee
• The right to remain in your home for life
• Fixed or capped interest rates for roll-up plans

Fees and Costs

Product fees can include arrangement fees (typically £0 to £995), valuation fees (free with many plans), legal fees (usually paid by the borrower), and adviser fees (often covered by the lender when using a networked adviser).

It's important to calculate the full cost of borrowing, not just the interest rate.

Additional Features

Some providers include options such as:

• Inheritance protection to ring-fence a portion of your property value
• Downsizing protection, which allows you to repay the mortgage early without penalty if you move to a smaller home after a set period
• Property transferability, allowing you to port your plan to a new home, subject to lending criteria

Which Lifetime Mortgage Offers the Lowest Interest Rate in 2025?

Lifetime mortgage interest rates vary based on age, property value, loan amount, and health status, but as of May 6, 2025, the lowest monthly equivalent rate (MER) available was 6.07 % through a deal with Aviva, accessible via Age Partnership⁷.

This deal applies to both lump sum and drawdown plans.

Pure Retirement's best available rate at the same time was 6.26 % MER.

Summary of Lowest Market Rates

Provider	Lowest Available Rate (MER, May 2025)	Plan Type
Aviva	6.07 %	Fixed-rate, drawdown or lump sum
Pure Retirement	6.26 %	Fixed-rate, standard LTV or high-LTV
Just Retirement	6.25 %	Drawdown and lump sum
Canada Life	6.29 %	Fixed-rate drawdown/lump sum

Why Interest Rates Matter

The interest rate is the single most important factor affecting the total cost of a lifetime mortgage. Because most lifetime mortgages are compound interest products, even a small difference in the rate can lead to significantly different outcomes over time.

For example, a borrower taking out a £70,000 lifetime mortgage at 6.07% instead of 6.29% could save over £6,000 in interest after 10 years, assuming no voluntary repayments. These differences grow even larger over longer timeframes or with higher loan amounts.

In drawdown plans, interest is only charged on funds that have been withdrawn. This makes the actual cost lower than lump sum borrowing for many homeowners, especially when combined with voluntary repayments of up to 10% per year (offered by most providers).

Can I Switch Lifetime Mortgage Providers Later?

Yes, it is possible to switch lifetime mortgage providers, but doing so is rarely straightforward and may come with financial implications. T

he process is known as remortgaging your lifetime mortgage, and it typically involves repaying your existing plan, often through a new lifetime mortgage with better terms.

Why Switch Providers?

Homeowners may consider switching for several reasons:

• To take advantage of lower interest rates
• To access a higher loan-to-value (LTV) based on increased property value or age
• To gain access to features like drawdown facilities, voluntary repayment flexibility, or inheritance protection
• To move away from providers with unfavourable ERCs or limited features

What Are the Costs?

Switching can incur substantial charges, especially if you are still within the early repayment charge (ERC) period of your current plan.

Most lifetime mortgage providers apply ERCs on a sliding scale, which can be as high as 10% in the early years of the loan.

Some plans also use gilt-linked ERCs, which are less predictable.

Additional potential costs include:

• Arrangement fees on the new mortgage
• Valuation and legal fees
• Adviser fees, unless waived by the provider

Unless your plan includes ERC exemptions (for example, after a set number of years or due to downsizing), switching is often only cost-effective later in the loan term.

Do Any Providers Make Switching Easier?

Some lenders, such as Aviva and Legal & General, offer downsizing protection or flexible ERC structures that make switching or settling the loan more affordable under specific conditions (e.g. after three or five years, or in joint cases when one borrower dies).

Before considering a switch, it is essential to get advice from a qualified equity release adviser.

They will carry out a cost-benefit analysis to determine whether remortgaging would leave you better off over the remaining term of the loan.

Do All Providers Follow Equity Release Council Standards?

Not all lifetime mortgage providers follow the standards set by the Equity Release Council (ERC), but all the leading UK providers featured in this guide are members.

Choosing a provider that adheres to ERC rules is essential for safeguarding your rights and financial wellbeing throughout the life of the loan.

What Is the Equity Release Council?

The Equity Release Council is the official trade body for the UK’s equity release industry.

It sets consumer protection standards that go beyond basic Financial Conduct Authority (FCA) requirements.

Providers, advisers, and solicitors who are ERC members must follow a strict code of conduct to ensure transparency, safety, and fairness.

What Standards Must ERC Members Follow?

All ERC-approved providers must offer the following guarantees:

• No Negative Equity Guarantee
  You (or your estate) will never owe more than the property is worth when it is sold.
• Right to Stay in Your Home for Life
  You have the legal right to live in your property until you die or move into long-term care.
• Fixed or Capped Interest Rates
  All lifetime mortgages must either have a fixed interest rate or, if variable, include a cap that cannot be exceeded over the lifetime of the loan.
• Right to Move the Mortgage to a New Property
  You can transfer your plan to a new home (subject to lender approval and criteria), avoiding penalties when moving.
• Independent Legal Advice Requirement
  All applicants must receive advice from a solicitor acting solely in their interest.

These safeguards help prevent scenarios such as unexpectedly high loan balances, eviction risks, or confusing contract terms.

How Can You Check if a Provider Is a Member?

You can verify whether a provider is a member of the Equity Release Council by searching the official ERC member directory.

Only providers listed there offer the full suite of consumer protections guaranteed under ERC rules.

How Do I Choose the Right Lifetime Mortgage for My Needs?

Choosing the right lifetime mortgage depends on your financial goals, property profile, personal health, and future plans.

With multiple providers offering variations in product structure, flexibility, and interest rates, it is important to assess each option against your specific needs rather than defaulting to the lowest advertised rate.

Key Questions to Ask When Comparing Providers

1. Do you need flexibility in accessing funds?
   If you don’t require all the money upfront, a drawdown plan can reduce the total interest charged. Providers like Aviva, Legal & General, and More2Life offer flexible drawdown options with optional cash reserve facilities.
2. Will you want to make repayments in the future?
   If preserving equity is a goal, choose a provider that allows voluntary repayments of up to 10% per year without penalties. Most top providers now offer this as standard, but repayment limits and minimum amounts vary.
3. Are you in good health or do you have a medical condition?
   If you have qualifying health conditions, you may be eligible for an enhanced lifetime mortgage that offers lower interest rates or higher loan-to-value ratios. More2Life and Pure Retirement are known for health-based underwriting.
4. Is leaving an inheritance important to you?
   Some plans offer an inheritance protection feature, allowing you to ring-fence a portion of your property value for beneficiaries. This may reduce the loan amount available to you but preserves wealth for your estate.
5. Are you planning to move in the future?
   Consider a provider that includes downsizing protection or allows your mortgage to be ported to a new property. This is useful if your housing needs may change in later life.
6. Do you meet the eligibility criteria?
   Minimum age (usually 55), property value, and condition can all affect eligibility. Certain lenders are more flexible with non-standard property types, including ex-council flats, leaseholds, or listed buildings.

A lifetime mortgage is a long-term financial commitment, and small differences in product features can lead to large differences in cost over time.

Always work with a qualified equity release adviser who can compare plans across multiple providers and help tailor recommendations based on your income needs, lifestyle, and estate planning goals.

Common Questions

In Conclusion

The best lifetime mortgage providers combine transparent pricing, flexible product features, and full adherence to Equity Release Council standards.

Choosing the right provider is not just about finding the lowest interest rate, it is about selecting a plan that aligns with your long-term goals, whether that involves maximising access to equity, preserving inheritance, or maintaining financial control through voluntary repayments.

By comparing leading providers such as Aviva, Legal & General, More2Life, and Pure Retirement, and understanding how their features differ, you can make a confident, informed decision that supports your retirement plans both now and in the future.

Always work with a qualified equity release adviser who can tailor product recommendations to your needs and help you navigate the long-term implications of the mortgage you choose.