Equity release interest rates - December 2024

Updated 3rd December 2024

The lowest equity release interest rate in December 2024 is currently 5.72%* (MER).

Comparing equity release rates can help you identify which lenders offer the best deals. The following information will help you understand how equity release rates work, how to compare plans, what you can expect to pay and what you can do to reduce the overall cost of the loan.

Compare current equity release interest rates

The table below shows interest rates available on a lifetime mortgage from some of the UK's leading equity release companies.

*If you're viewing this page on a mobile phone, scroll right to see the full table.

Provider MER Type Product How much cash could you release?
Aviva 6.43% Fixed Drawdown Calculate now
Aviva 6.43% Fixed Lump sum Calculate now
Pure Retirement 5.86% Fixed Drawdown Calculate now
Pure Retirement 5.86% Fixed Lump sum Calculate now
Just Retirement 5.72% Fixed Drawdown Calculate now
Just Retirement 5.72% Fixed Lump sum Calculate now
Canada Life 5.93% Fixed Drawdown Calculate now
Canada Life 5.93% Fixed Lump Sum Calculate now

Please note: Lifetime interest rates correct as of 3rd December 2024, based on a 67 year old releasing £30,000 from a property valued at £300,000. Rates vary by provider & depend on your personal circumstances and whether you prefer a cash lump sum or an income - December 2024 - 5.72% APR exclusive deal through Age Partnership when you use our calculator*.

What is the typical interest rate for equity release today?

In the Summer 2024 Market Report, the Equity Release Council stated that the average advertised interest rate was 6.91% in July 2024; this compared to the lowest rate through Age Partnership of 5.47%.

How much interest will I pay on equity release?

The interest rate charged on equity release is calculated based on a number of factors:

  • How much money you want to borrow
  • Your credit history
  • The provider's lending criteria
  • Your age and marital status

The amount of interest you pay in total is calculated based on your original loan, the compound interest you accrued over the life of the mortgage and how long the loan is in place.

Using the calculator to find out how much you could release will also check your basic eligibility for equity release, with no obligation to proceed.

Can you reduce the amount of interest on a lifetime mortgage?

If you want to keep the overall cost of the lifetime mortgage down, you could choose a lifetime mortgage that allows you to repay some, or all of the interest without incurring an early repayment charge. Over half of the products offered by members of the Equity Release Council allow you to do this.

Other optional features that can help include:

Drawdown reserve: This lets you release an initial amount of money and create a reserve account that you can draw down on as and when you need it. You don't owe any interest on the money in your reserve account unless you actually access it, so compound interest accrues more slowly.

Downsizing protection:  If you decide to sell your home and move to a smaller property, this protection lets you repay your loan without having to pay an early repayment charge.

Compare equity release rates to get a better deal

Whether you choose to do it yourself or with the help of a qualified IFA or broker, comparing equity release could help you find the lowest interest rates on the market.

There are a number of things to consider in addition to the interest rate charged:

  • Would you prefer to take the money in one go, or a drawdown facility that allows you to hold money in reserve for future use?
  • Would you like to guarantee that some equity is left for family as an inheritance?
  • Would you like to reduce the overall cost of equity release by repaying some or all of the interest?

So, when you compare equity release you should also consider how the lifetime mortgage works and the flexibility it offers you - which is where a qualified equity release specialist could help.

How can I find the best equity release rates in 2024?

To find the best equity release rates, you may want to get the help of a specialist IFA or broker who can compare plans on your behalf.

We work in association with Age Partnership, an equity release specialist who compares lifetime mortgage interest rates and products from a selection of the UK’s leading providers. They provide initial advice for free and without obligation. Only if you choose to proceed and your application is completed would a fee be payable - which can usually be taken from the cash sum.

Through their relationships, they have secured preferential lifetime mortgage rates that you may not be able to get elsewhere.

Your Age Partnership adviser will talk through your requirements, fully explain how equity release works, help you consider whether it’s right for you and provide comparisons and a written illustration that you can talk through with your family.

Try our no-obligation calculator

Pros and cons

Learning about the pros and cons of equity release will help you decide if it’s a worthwhile option for you. Let's take a look.

Did you find this information helpful?

*lowest rate with our chosen partner Age Partnership, other rates maybe available.

We work with

First Choice Health
Age Partnership
Quotezone.co.uk
sunlife.co.uk

Our aim is to provide you with clear and accurate information to help you research your chosen financial products and services. The material on this site is for general information only and does not constitute any form of advice or recommendation.

If a link has an * by it, it means it is an affiliated link to an insurance company or broker that may result in a payment to the site. Should you use the equity release calculator, speak to an Age Partnership adviser and take out a plan out using their services, we receive a commission, however this will not affect the price you pay.

Also, from time to time you may see advertisements from third party companies who pay us a fee to advertise their services on our site.

None of the above arrangements constitute advice or recommendations, as other products and companies are available. You should always obtain independent, professional advice for your own situation.

The information provided on this site is accurate at the date of publication, occasionally however, things will change before we have had the opportunity to update them, so please do check. Always do your own research and take independent advice.

We do not investigate the solvency of any company mentioned on our website and are not responsible for the content on websites we link to.

Over50choices is an independent company and regulated by the FCA (No.594280) for insurance products only and a member of the Equity Release Council.