Best Mortgages Over 70: How To Source The Best Deals

The top 10 best mortgages for over 70s include lenders Aviva, Royal London, Liverpool Victoria, Legal & General, More 2 Life, Canada Life, Just (formerly Just Retirement), Standard Life, Scottish Widows, Crown & Livemore.

Author: Paul Murphy Later Life Finance

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Aviva (Best provider for flexible equity release underwriting criteria)

“We’re a composite insurer made up of separate business areas, covering everything from pensions to pet insurance”

Aviva offers a choice of two Defaqto 4-star rated lifetime mortgages.

They offer flexible mortgages that allow you draw down money as and when you need it.

They have a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest, up to 10% of the sum borrowed can be repaid per year.

We are often asked, how long does equity release take after valuation? Aviva and several other lenders will process your application in around 6 weeks after valuation.

The BBC equity release calculator doesn’t include Aviva plans however as an independent broker Later Life Finance compare the whole equity release market to source the top deals.

Nationwide

“We’re a building society, or mutual, owned by our members. That’s anyone who banks, saves or has a mortgage with us”.

Technically Nationwide aren’t a lifetime mortgage lender. They provide mortgages with fixed monthly payments for later life borrowers, including a retirement interest only mortgage. They do not offer a drawdown option.

Their plans differ from a lifetime mortgage as the Nationwide require sufficient income to service the interest payments. The plans are not protected by Equity release council codes of conduct.

Later Life Finance’s calculators provide the key options available for older borrowers.

Just (JRL Group) (Best equity release provider for cash back deals & medically enhanced plans)

“JRL started out by specialising in guaranteed income for life solutions (provided by pension annuities) and lifetime mortgages”. They also use the trading name HUB which refers to companies within the Just Group.

Just offer a lifetime mortgage that lets you release a one off lump sum or an initial lump sum and extra cash when you need it.

They have flexible mortgages that allow you draw down money as and when you need it.

They don’t provide reversion mortgages, however they have a range of lifetime mortgages to compare.

They offer a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest. Just also offer a medically enhanced lifetime mortgage.

Liverpool Victoria

“From humble beginnings we’ve been going strong since 1843!”

LV= offer flexible equity release plans that allow you draw down money as and when you need it.

They offer a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest. Up to 10% of the sum borrowed can be repaid per year.

Liverpool Victoria have fixed early repayment charges compared to many of the other lenders available.

Pure Retirement

“Established in 2014, Pure Retirement was the top of this year’s list of fastest growing businesses in Yorkshire”

Pure Retirement offer equity release plans and have flexible mortgages that allow you draw down money as and when you need it.

They have several lifetime mortgage plans, including Sovereign, Emerald and Classic range.

Standard Life (Best provider for term interest only lifetime mortgage equity release)

Standard Life is “a brand that has been trusted to look after people’s life savings and retirement needs for nearly 200 years”.

Standard Life offers two Defaqto 5-star rated lifetime mortgages. These plans are not available across the whole marketplace. Select brokers can arrange their mortgages.

They offer flexible mortgages that allow you draw down money as and when you need it, and a repayment option that lets you repay some or all of the monthly interest to reduce the effect of compound interest.

Standard Life have defined exit fees starting at 8% in year 1 which reduces each year.

Crown (Best equity release home reversion provider).

“Crown Equity Release is an independent specialist arranger of capital, it has been assisting clients on how to get the most out of their retirement Since 2001”

Crown are an equity release home reversion plan specialist.

A home reversion plan involves selling a share of your property, as opposed to a mortgage where you retain full home ownership.

This arrangement is more permanent than a lifetime mortgage and are difficult to reverse once they are arranged.

More 2 Life (Best for range of funders)

“More2life was founded, with big ambitions to change the equity release market by designing lifetime mortgages focussed on customers’ needs”

More 2 Life offer equity release plans include enhanced terms for certain medical issues, which could increase the level of lending available.

They offer flexible mortgages which allow you draw down money as and when you need it.

They have a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest.

Up to 10% of the sum borrowed can be repaid per year.

Livemore (Best provider for RIO and TIO deals)

“LiveMore was founded in in 2020 to solve a problem that many people aged 50-90+ in the UK face: accessing the mortgage options they need and deserve”

Providing retirement interest only and lifetime mortgages, Livemore are quickly gaining a reputation for efficiency and flexibility in the later life mortgage market.

Try our equity release calculator It’s completely free and there’s never any obligation to proceed with a solution.

Royal London

“We’re the UK’s largest mutual life, pensions and investment company, offering protection, long-term savings and asset management. Royal London have been working on a range of products to help advisers when discussing the use of property wealth in retirement.

The range will be supported consistently good customer service, competitive pricing, and flexible underwriting criteria, all underpinned by the strength of the Royal London brand”.

Royal London are an established brand and offer flexible mortgages which allow you draw down money as and when you need it.

Scottish Widows

“In 1995 Scottish Widows diversified, with the launch of Scottish Widows Bank. Then on 3rd March 2000, after almost 180 years of independence, the Society demutualised to become part of the Lloyds TSB Group”

Scottish Widows are an established brand and offer flexible mortgages which allow you draw down money as and when you need it.

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Equity release FAQs

What is the downside to equity release?

The main downside to equity release is the effect of compound interest on the most common type-the lifetime mortgage. However, this interest effect can be avoided or reduced with voluntary repayments. The equity release council included voluntary repayments as a requirement for lenders to meet their strict codes of conduct. The ability to make voluntary, penalty-free partial repayments was made a compulsory feature for all products to meet Equity Release Council standards from March 2022.

Do I need an advisor for equity release?

Prior to finalising your decision on equity release, it is crucial to seek financial guidance with a qualified equity release adviser. Discussing your plans with an independent equity release adviser will enable you to compare the whole market, and your adviser will identify the most suitable solution to match your specific circumstances. Additionally, should you opt to proceed with equity release, it is essential to obtain legal advice. Your adviser will be able to suggest an independent solicitor who specialises in equity release.

What does Martin Lewis think of equity release?

While Martin Lewis does not provide a direct endorsement for equity release, he acknowledges that under specific circumstances, it can be a viable solution to access funds tied up in your home to meet living costs and provide financial security. Where downsizing has been ruled out, for example, Martin Lewis has a balanced view on the concept of equity release and it's benefits to homeowners seeking extra funds in later life, and advises independent advice on equity release is obtained.

Is there a catch to equity release?

Equity release provides you with a cash lump sum or a drawdown facility to take the cash over a longer timeframe. The "catch" with equity release is that the money released from your home, plus interest will need to be repaid when the property is eventually sold. With a Lifetime Mortgage, you will owe the money borrowed plus the loan interest accrued. If you make voluntary repayments to the mortgage this will help reduce the amount of interest repayable on the mortgage, and will help maximise any inheritance your beneficiaries may receive.

How long does it take to arrange equity release?

It takes between six and eight weeks for an equity release application to complete and to receive your funds. The timescale depends on whether you have a mortgage to repay from the money taken, and whether there are any legal processes which may delay the process, such as moving home or changing the title.

Do you need an LPA for equity release?

A lasting power of attorney, or LPA is not required to setup an equity release plan. However, having an LPA in place is important to ensure access to further funds from a drawdown plan if you ever lose capacity to make your own decisions, or cannot sign your wishes for physical reasons, such as a stroke. If you have not set up an LPA and it is required, the Court will need to appoint a deputy for you. Planning ahead is prudent to ensure you have arranged such measures in case an LPA is required in the future, and this can save a great deal of stress if and when the time comes to use the LPA.

Can you use equity release for anything?

Equity release funds are tax-free and can be used for anything you wish (providing any existing mortgage is repaid from the funds). Popular uses of equity release funds include repaying mortgages and unsecured debt, home improvements, a cash boost, purchasing second homes, and helping family with a financial gift.

What is the most popular form of equity release?

Lifetime mortgages are the most popular form of equity release and provide the flexibility to move home and make voluntary payments, if preferable. Equity release customers unlocked £1.6 billion in property wealth in Q2 of 2022. (Equity release council)

how long does equity release take

An equity release application should take around eight weeks until you receive your equity release funds. This depends on whether you have an existing mortgage to repay and if any changes to the title are required, which can increase the timescale to arrange.

What is the typical interest rate for equity release?

The lowest Equity Release rate is currently 6.36% (Monthly Equivalent Rate) fixed for life. The highest interest rate in the market is currently 9.50% (Monthly Equivalent Rate).

Best Mortgages Over 70: How To Source The Best Deals

Aviva (Best provider for flexible equity release underwriting criteria)