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    By Clare Townhill • Updated 5th March 2026
    Disclaimer: Prices and ratings correct at time of writing.

    On this page:

    Compare current equity release interest rates

    What is the typical interest rate for equity release today?

    How much interest will I pay on equity release?

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

    Compare equity release rates to get a better deal

    How can I find the best equity release rates in 2025?

     

    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 6.50% Fixed Drawdown Calculate now
    Pure Retirement 6.49% Fixed Drawdown Calculate now
    Just Retirement 6.90% Fixed Drawdown Calculate now
    Canada Life 6.78% Fixed Lump Sum Calculate now

    Please note: Lifetime interest rates correct as of 5th March 2026, 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 - March 2026 - 6.49% APR exclusive deal through Age Partnership when you use our calculator*.

    Individual Equity Release Provider Reviews

    The sections below break down some of the providers shown in the comparison table above, using the same information in a clearer format. As always, rates and product availability depend on your age, property value, health, postcode and the amount you want to release.

    Aviva

    MER: 6.50% • Type: Fixed • Product: Drawdown

    Overview

    Aviva is one of the best-known providers in the equity release market and offers fixed-rate drawdown lifetime mortgages. On the example shown here, the MER is 6.50%, making it one of the lower rates in the table.

    Product Example Used

    Fixed Drawdown Lifetime Mortgage

    Provider MER Type Product Action
    Aviva 6.50% Fixed Drawdown Calculate now
    What’s included?

    This example shows a fixed-rate drawdown lifetime mortgage. That means the interest rate is fixed for life on the money you actually release, giving more certainty over future borrowing costs.

    With a drawdown product, you usually take an initial amount first and may be able to keep some funds in reserve for later, which can help reduce the amount of interest that builds up compared with taking the full amount in one go.

    Key features

    Aviva appears in this table with a fixed drawdown option, which may appeal to homeowners who want flexibility as well as a degree of rate certainty.

    Drawdown plans can be useful if you do not need all the money immediately, because interest is normally charged only on the funds released rather than the full reserve amount left untouched.

    This type of product may suit people looking to supplement retirement income gradually, fund future expenses in stages or keep borrowing more controlled over time.

    Early repayment / flexibility

    When comparing Aviva with other providers, it is important to look beyond the headline rate and check whether the product offers features such as optional repayments, downsizing protection or flexibility around future withdrawals.

    If you want to reduce the long-term effect of compound interest, products that allow you to repay some or all of the interest without penalty can make a meaningful difference over time.

    You should also check whether any early repayment charges apply if your circumstances change in the future.

    Provider notes

    The rate shown is based on the example used in the article and should be treated as a guide rather than a guaranteed offer.

    Your final rate and product eligibility will depend on personal circumstances including age, property value, how much you want to release and the lender’s underwriting criteria.

    As with any lifetime mortgage, the longer the loan remains in place, the greater the effect of compound interest on the total amount owed.

    Pros and Cons
    Pros
    • Market leader in direct cremation
    • High customer satisfaction
    • Transparent pricing
    • Nationwide coverage
    Cons
    • No attended funeral option
    • No burial service

    Pure Retirement

    MER: 6.49% • Type: Fixed • Product: Drawdown

    Overview

    Pure Retirement appears in the table with a fixed drawdown product and one of the lowest rates shown on the page at 6.49%.

    Product Example Used

    Fixed Drawdown Lifetime Mortgage

    Provider MER Type Product Action
    Pure Retirement 6.49% Fixed Drawdown Calculate now
    What’s included?

    This example is a fixed-rate drawdown lifetime mortgage, which combines a fixed interest rate with the flexibility to release money in stages rather than all at once.

    That can be attractive for borrowers who want to manage how quickly interest compounds, especially if they only need part of the money now and want access to more later.

    Key features

    Pure Retirement has the lowest MER shown in the comparison table on the date of writing, which makes it a strong benchmark when comparing providers.

    Because the product type is drawdown, it may suit homeowners who want more control over when they release funds and how much interest is charged over time.

    It is worth remembering that a low rate is only one part of the picture; flexibility, repayment options and ERC terms matter too.

    Early repayment / flexibility

    When comparing Pure Retirement with other lenders, check whether the product allows voluntary repayments, whether there is downsizing protection and how flexible future withdrawals are.

    These features can be just as important as the rate itself, especially if your priorities are to preserve inheritance, reduce long-term interest or keep future options open.

    Any early repayment charge structure should also be reviewed carefully before proceeding.

    Provider notes

    The rate shown was the lowest in the table at the time this article was updated, but that does not guarantee it will be the best fit for every borrower.

    Final recommendations should take account of your age, health, property value, borrowing needs and whether you prefer drawdown flexibility or a one-off release.

    Pros and Cons
    Pros
    • Lowest rate shown in the table
    • Fixed drawdown structure offers flexibility
    • Potentially helpful for managing compound interest
    • Strong comparison point against other lenders
    Cons
    • Lowest rate does not always mean best overall deal
    • Suitability still depends on full product terms
    • Personal circumstances can affect final options available

    Just Retirement

    MER: 6.90% • Type: Fixed • Product: Drawdown

    Overview

    Just Retirement appears in the table with a fixed drawdown lifetime mortgage at 6.90% MER. While the rate is higher than some of the other examples shown, it still deserves comparing on overall suitability and features.

    Product Example Used

    Fixed Drawdown Lifetime Mortgage

    Provider MER Type Product Action
    Just Retirement 6.90% Fixed Drawdown Calculate now
    What’s included?

    This example shows a fixed drawdown lifetime mortgage. The fixed rate gives clarity over the borrowing cost, while the drawdown structure may help you release funds as needed rather than borrowing everything on day one.

    That can be useful for people who want to phase borrowing over time or keep interest growth under better control.

    Key features

    The main attraction here is the combination of a fixed rate with drawdown flexibility.

    Even though the MER shown is higher than some competitors in the table, some borrowers may still find a product worthwhile if the lender’s terms, underwriting approach or flexibility better suit their circumstances.

    This is why comparison should always include both cost and product design.

    Early repayment / flexibility

    As with other lifetime mortgages, it is worth checking whether the product allows optional repayments, whether early repayment charges apply and whether there are protections if you decide to move home later.

    These details can materially affect the long-term cost of the plan and the amount ultimately left in your estate.

    Provider notes

    Just Retirement’s example rate sits above the lowest offers shown on the page, so it should be compared carefully alongside more flexible product features and the advice of a qualified specialist.

    The best product is not always the one with the lowest rate if it lacks features you may need later.

    Pros and Cons
    Pros
    • Fixed interest rate provides long-term certainty
    • Drawdown option allows staged borrowing
    • Established provider in the equity release market
    • Useful option when comparing multiple lenders
    Cons
    • Higher MER than some competitors shown in the table
    • Flexibility depends on the specific product chosen
    • Compound interest will increase the total loan over time

    Canada Life

    MER: 6.78% • Type: Fixed • Product: Lump Sum

    Overview

    Canada Life is shown with a fixed lump sum lifetime mortgage at 6.78% MER in the table above. This differs from the drawdown products listed elsewhere, because the money is taken in one go rather than in stages.

    Product Example Used

    Fixed Lump Sum Lifetime Mortgage

    Provider MER Type Product Action
    Canada Life 6.78% Fixed Lump Sum Calculate now
    What’s included?

    This example is a fixed-rate lump sum lifetime mortgage. Instead of drawing money as needed, you take the borrowing in a single amount at the outset.

    That may suit borrowers with a specific one-off funding need, such as repaying an existing mortgage, helping family or covering a major planned expense.

    Key features

    The key distinction here is that Canada Life’s example is a lump sum product rather than drawdown.

    That can make the arrangement simpler to understand, but it also means interest normally starts accruing on the full amount released from day one.

    For some people, that trade-off is worthwhile if they need immediate access to a larger sum and prefer the certainty of a fixed lifetime rate.

    Early repayment / flexibility

    Because a lump sum plan releases all the money upfront, repayment flexibility becomes especially important.

    Borrowers should check whether the plan allows optional repayments, what early repayment charges might apply and whether there are protections if they later want to move home or reduce the loan.

    This is particularly important if inheritance planning is a priority.

    Provider notes

    Canada Life’s example rate sits between the lower and higher offers shown in the table, but the product should really be assessed on whether a lump sum suits your needs better than drawdown.

    If you do not need all the money immediately, a drawdown alternative may sometimes help reduce total interest over the life of the plan.

    Pros and Cons
    Pros
    • Fixed rate provides certainty over borrowing costs
    • Lump sum option suits one-off borrowing needs
    • Well-known provider in the UK later-life lending sector
    • Straightforward product structure
    Cons
    • Interest accrues on the full amount from day one
    • Less flexible than drawdown for staged borrowing
    • Repayment terms and ERCs should be checked carefully

    What is the typical interest rate for equity release today?

    In the Summer 2025 Market Report, the Equity Release Council stated that the average advertised interest rate was 7.24%; this compared to the lowest rate through Age Partnership of 6.49%.

    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.

    How do I compare equity release interest rates?

    To compare equity release interest rates, use the table above to review offers from multiple providers. 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 compound interest affects equity release

    Equity Release interest compounds over time, meaning you're charged interest on both the original loan and the interest that builds up each year. If you do not make repayments, the total amount owed can grow quickly, which reduces the value of your estate. Because the loan is repaid when your home is sold, the money you release today effectively becomes debt agaisnt your property, leaving less for your beneficiaries. 

    Ashley Shepherd

    Ashley Shepherd


    Over 30 years’ experience in financial services including retirement and later-life planning.

    Our equity release expert’s view
    Equity release can be a highly effective later-life funding solution, but only when the structure of the plan is properly understood.
    Interest rates, early repayment charges and features such as drawdown flexibility have a far greater impact on long-term cost than many people initially realise.
    Protections such as the no-negative-equity guarantee and adherence to Equity Release Council standards are, in my view, fundamental safeguards rather than optional benefits.
    My opinion is that equity release should only proceed after a thorough comparison and clear understanding of how the arrangement will affect retirement income, estate value and family expectations over time.

    How can I find the best equity release rates in 2026?

    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.

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    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.

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    Alternatives to consider

    Looking for alternatives to equity release? Explore our guide to find the best options to secure your retirement.

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

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    Quotezone.co.uk
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