Could a Standard Life equity release plan be the solution to topping up your retirement investments, fund your dream holiday, or just provide extra tax-free cash? 

Equity release is a big enough decision without having to wade through the many options available on the market.

Luckily, we are here to help. 

STATEMENT: BankingTimes is a separate third-party information provider and therefore not related to Standard Life, and the information replicated in this section represents the interpretations of BankingTimes only and not the opinions of Standard Life. This piece does not constitute advice, or an incitement to enter any services or products provided by Standard Life.

What Is the Process for Standard Life Equity Release?

The process for Standard Life equity release typically begins with an initial consultation where they evaluate your financial situation and property value.

They then calculate the maximum amount you can release from your home equity, considering factors like your age, health condition, and the property's market value.

Post evaluation, they propose an equity release scheme, exactly tailored to your needs.

Once the plan is approved, the funds are released either as a lump sum or regular income, depending on your preference.

Rest assured, throughout the process they ensure maximum transparency and a client-centric approach, as they are regulated by the Financial Conduct Authority (FCA).

Our BankingTimes experts explore the key aspects of the providers equity release plans including eligibility criteria, costs, pros and cons, customer reviews, and more.

The information below will help you find out if it has the right option to suit your unique equity release needs.

Who Is Standard Life?

Founded in 1825, the company has a well-proven track record as the UK’s largest long-term savings and retirement business.¹

It is a well-established financial services company, which since 2018, forms part of the Phoenix Group.²

Its financial products are not limited to savings and retirement but also include insurance, investments, and equity release.

Why Should You Consider Using Standard Life?

You could consider using it due to its strong reputation and experience in the financial industry.  

Here are some additional reasons to consider it as an equity release provider:

• Offers a variety of equity release products
• Regulated by financial authorities like the FCA
• Access to financial advisers for guidance
• Potential for competitive interest rates and terms
• Possible flexible features in equity release plans
• Transparent fee structures

Does It Offer Equity Release?

Yes, it does offer equity release designed to help you access the value tied up in your property. 

It has partnered with Key Retirement Solutions³ to provide tools and content on its website to help you with your online queries.

The equity release schemes that it offers are called “Horizon”.

What Types of Equity Release Does It Offer?

It offers two main types of lifetime mortgage equity release plans, a Lump Sum Lifetime Mortgage and a Drawdown Lifetime Mortgage.

Standard Life's Lump Sum Lifetime Mortgage

With the Lump Sum Lifetime Mortgage, you receive a one-time lump sum payment based on your property's value with no monthly repayments to make unless you choose to. 

The loan amount, plus accumulated interest, is repaid when your home is sold, typically upon your passing or when you move into long-term care.

Standard Life’s Drawdown Lifetime Mortgage

The Drawdown Lifetime Mortgage allows you to release a smaller amount of money at first, and keep the rest in a cash reserve with the lender. 

You can access the cash reserve whenever you need it, as long as there is money left, in accordance with your plan’s terms and conditions. 

The best part is

You only pay interest on the funds you withdraw, not on the money in the reserve, which could significantly reduce the total amount owed at the end of the term.

Example of Lump Sum Vs. Drawdown Lifetime Mortgage Compound Interest

With an average release amount of £81,703 and a monthly equivalent rate of 6.74% MER, let us see how you might save on compound interest.³

It is important to note that future drawdowns will be charged at the prevailing interest rate. 

Customer no. 1 takes all their cash in one go through a lump sum lifetime mortgage and interest is charged on the full amount from the onset.

Customer no. 2 takes an initial loan of £51,703 with interest only charged on this amount. Two additional £15,000 drawdowns are taken over time, bringing the total release to £81,703.

Customer no. 2 saves £32,851 in interest charges.

Although both customers borrowed £81,703 over 15 years, customer no. 2 saved on compound interest by drawing the funds in stages and only paying interest on the amount released.

This example reflects a loan term of 15 years but it could be longer or shorter.

These figures are for indicative purposes only. 

Features of Standard Life’s Lifetime Mortgages

Understanding the features of the provider’s lifetime mortgages can help you determine whether its plans are suitable for your circumstances and goals. 

Some of its plans include the following features:

• The option of making partial repayments from the start
• Guaranteed inheritance protection
• Downsizing protection
• Exemption from early repayment charges in the case of one partner’s death
• Lump sum and drawdown options
• Typical loan amounts between £10,000 and £1,500,000
• No negative equity guarantees

To ensure that an equity release plan aligns with your needs it is best to consult a qualified advisor or broker for guidance. 

Who Qualifies for Standard Life’s Equity Release?

To qualify for an equity release plan, you need to satisfy specific personal and property requirements.

Its general qualifying criteria include:⁴ 

• You need to own a property in the UK
• The property must be your main residence
• All applicants, including joint ones, must be aged between 55 and 84
• The value of your property should be at least £99,000
• There should be minimal to no outstanding mortgage on your property

What Are Standard Life’s Costs for Equity Release?

There are standard costs associated with equity release, including arrangement fees, legal fees, and valuation fees. 

These costs can vary, so it is important to understand the full scope of expenses before making your choice.

What Are the Interest Rates on Its Equity Release Plans?

Its equity release interest rates range from 5.97% to 6.28% APR.⁵

* While we regularly review our rates, these may have shifted due to changing market conditions since our last update.

What Are Its Fees for Equity Release?

The costs of the Lump Sum and Drawdown Lifetime Mortgages will differ based on the amount you release and the interest rates you are able to secure. 

Drawdown mortgages may offer more cost-effective solutions due to the flexibility in withdrawing funds.

A £995 arrangement fee is charged on completion of on some of its lifetime mortgages plans.*

* While we regularly review our rates, these may have shifted due to changing market conditions since our last update. 

Other Costs to Consider With Its Equity Release Plans

Aside from interest and standard fees, you should also consider other costs. 

Other fees when setting up your lifetime mortgage include:

• Valuation Fee: Free on its lifetime mortgages and are valid for 6 months.
• Solicitors Fee: This can vary depending on your chosen solicitor but could be between £510 and £1,025. This will need to be paid by you directly to your solicitor.* 

It is also important to be aware of potential additional fees:⁶

• Early repayment charges are fixed for 8 years, after which they no longer apply.
• Fee for further lending arrangements.
• £500 arrangement fee for moving home.*
• Charges for changes in borrowers.
• Fees for the transfer of equity.

Should you wish to make any repayments during the life of your loan, you could be liable for a partial repayment fee.  

However

Partial repayments of 10% of your initial loan can usually be made within each 12-month period*.

*While we regularly review our rates, these may have changed since our last update.

Does Standard Life Have an Equity Release Calculator?

Yes, there is an equity release calculator available on its website.⁷

Advantages and Disadvantages of Standard Life Equity Release

A significant advantage is that it is one of the leading providers of equity release products in the UK.

However, a disadvantage that you should consider is that equity release could affect your eligibility for means-tested benefits. 

Additional pros worth considering include:

• The plan options include a fee-paid or a fee-free option.
• Its interest rates are very competitive.
• It offers flexible LTV options⁸
• Guaranteed inheritance protection is automatically included 
• Downsizing protection is included
• Early repayment fees fall away after 8 years

Cons to keep in mind include:

• The negative effect a lifetime mortgage will have on your home’s value
• Equity release can affect your eligibility for state benefits
• Equity release reduces the amount you can pass on to your heir
• Compound interest can easily double your loan if no repayments are made
• Once you have taken out an equity release plan, no other borrowing can be taken out using your home as security

Equity release may not be suitable for everyone, which is why your financial advisor will go through the pros and cons of each plan and also ask you to consider alternative options.

Customer Reviews and Rating

Online review of the provider are relatively poor, with communication and clarity of information being their biggest complaints. 

Read its latest reviews on Trustpilot.com.

Lodging Customer Complaints

Complaints can be lodged directly on its website or via email or phone. 

As a company, it prides itself on offering customer-focused support and precise information and will do its utmost to resolve any complaints promptly. 

Standard Life FCA Details

Standard Life Lifetime Mortgages Limited is authorised and regulated by the Financial Conduct Authority (FCA). 

Its FCA reference number is 310206⁹ and it has permission to provide the following regulated activities: accepting deposits, and credit granting by non-deposit-taking finance houses and other specialist consumer credit grantors.

Getting in Touch With Standard Life

If you want to get in touch with Standard Life for equity release, you have several options. 

You can:

• Request a call back from the equity release team by filling out a form on its website. They will answer your questions and introduce you to Modern Lending Advisers, who provide expert equity release advice on their behalf.
• Call the equity release team directly on 03333079000 or email them at info@standardlifehomefinance.co.uk. 

How Did We Review the Info on Standard Life?

We reviewed its information by examining several criteria. 

• We assessed its reputation, longevity, and customer feedback, alongside industry accolades. 
• We evaluated its product diversity and adaptability to varying needs, as well as the competitiveness and transparency of its interest rates and fees. 
• We scrutinised its customer service efficiency, the comprehensiveness of its online resources, and the functionality of tools like its equity release calculator. 
• We confirmed its adherence to industry standards, such as the Equity Release Council's guidelines.
• We delved into client feedback, success stories, and complaint management approach.

Research and input from our expert financial team were instrumental in ensuring a thorough and balanced review of this equity release information.

Common Questions

Conclusion

The provider offers a competitive choice of equity release plans to help homeowners access their property's value while remaining in their homes. 

It is important to carefully consider the costs, benefits, and potential drawbacks. 

It is also important to speak to a professional before you settle on an equity release plan. 

By considering your financial goals and individual circumstances, you can determine whether Standard Life's equity release options are the right choice for you.