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The current lowest equity release rate for April 2025 is 6.20% (MER) – which is 0.05% higher than March.
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Rates Last updated: 1st April 2025
The current lowest equity release rate for April 2025 is 6.20% (MER) – which is 0.05% higher than March. Your own personal rate may differ depending on your age and the provider you choose.
Here are some of April’s best equity release rates available for lump sum lifetime mortgages, where you take a single one-off release of tax-free cash:
Best equity release interest rate (lump sum lifetime mortgage) for April 2025
| Age of borrower: | Age 55 | Age 60 | Age 65 | Age 70 | Age 75 | Age 80 | Age 85 |
|---|---|---|---|---|---|---|---|
| Rate (MER): | 6.20% | 6.20% | 6.20% | 6.20% | 6.20% | 6.20% | 6.33% |
Best equity release rates from a search of leading UK equity release providers at Advise Wise on 01/04/2025, based on a single person taking the maximum available release against property equity of £200,000 with a postcode of PE7 8JG. ‘MER’ is ‘monthly equivalent rate’.
Rates change daily and the best rate available to you may differ from the ones shown above – so please contact us for personalised quotes showing the best equity release interest rates currently available to you.
As you might expect given the huge upheaval in the economy in recent times, equity release rates have changed frequently during the past few years.
According to data from Key Equity Release and Advise Wise, here’s how interest rates on new equity release plans changed from 2006-2024. But remember, these are average rates and it may be possible to secure a below-average rate by shopping around providers.
Sources: 2006-2021 data, Key Equity Release, average interest rates for Q1 of each year. 2006-2023 data, Key Equity Release, year-average rates (2023 is last year available from this source). 2024 data, Advise Wise data reported by the Equity Release Council, average rate at the start of Q4 2024.
The good news for people borrowing money through equity release is that they have protection from future rate changes. A release with a lump sum lifetime mortgage is typically at a fixed rate, so the interest rate on a plan wouldn’t increase if interest rates rise. However, this does of course mean that the borrower wouldn’t benefit from any fall in the interest rate either.
How much equity you can release from your home depends on several factors, most importantly your age, your property’s value and how much equity you have in it. Typically, the older you are and the more equity you have, the more you can release.
Here is our analysis of the maximum release levels from leading UK equity release providers for April 2025:
Maximum release amounts (lump sum lifetime mortgage) for April 2025
| Property value | Age 55 | Age 60 | Age 65 | Age 70 | Age 75 | Age 80 | Age 85 |
|---|---|---|---|---|---|---|---|
| £200,000 | £59,200 | £68,200 | £77,600 | £88,000 | £102,600 | £116,200 | £116,800 |
| £300,000 | £88,800 | £102,300 | £116,400 | £132,000 | £153,900 | £174,300 | £175,200 |
| £400,000 | £118,400 | £136,400 | £155,200 | £176,000 | £205,200 | £232,400 | £233,600 |
| £500,000 | £148,000 | £170,500 | £194,000 | £220,000 | £256,500 | £290,500 | £292,000 |
Maximum releases from a search of leading UK equity release providers at Advise Wise on 01/04/2025, based on a single person with no outstanding mortgage with a postcode of PE7 8JG. Release levels (loan to value – LTV) change daily and the maximum release available to you may differ from the ones shown above. Please contact us to arrange a search of lenders to establish the maximum you can release.
Simply select your property type to find out
It’s important to understand the equity release interest rates offered by providers if you are considering this form of later life lending. Rates have risen over the past year or two, so it is especially important that you know how to find the best rate when taking out an equity release plan.
In our guide to equity release interest rates, we look at how interest rates work, the current rates available, and which factors will affect your own unique rate. We hope that this will help you when it comes to choosing a provider and plan, should you choose to investigate equity release further.
This table illustrates how an equity release rate of 5% (used here as an example) translates into the amount of interest in cash terms that would ‘roll up’ on a lump sum release of £30,000.
You can see that with compound interest, the lender charges interest on the total amount of the loan – including any interest that has built up since the equity was released.
Example of how equity release interest rates work for a £30,000 lump sum release at 5% annual interest
| Year | Total loan + interest owed at START of year | 5% AER interest | Total loan + interest owed at END of year |
|---|---|---|---|
| 1 | £30,000 | £1,500 | £31,500 |
| 2 | £31,500 | £1,575 | £33,075 |
| 3 | £33,075 | £1,654 | £34,729 |
| 4 | £34,729 | £1,736 | £36,465 |
| 5 | £36,465 | £1,823 | £38,288 |
| 6 | £38,288 | £1,914 | £40,202 |
| 7 | £40,202 | £2,010 | £42,212 |
| 8 | £42,212 | £2,111 | £44,323 |
| 9 | £44,323 | £2,216 | £46,539 |
| 10 | £46,539 | £2,327 | £46,539 |
There are ways that you can reduce the amount of interest building up on the loan, including an interest-only lifetime mortgage (see below).
Another option is a drawdown lifetime mortgage, where you take an initial release of some of your home’s equity, and then draw additional cash instalments over time. Because interest only builds up once each release is taken, the overall cost of the loan will typically be less than with a lump sum plan.
With a traditional ‘roll up’ lifetime mortgage, you release equity in the form of a loan secured against your property. You don’t make any monthly repayments. Instead, the interest is typically paid back along with the loan itself via the sale of your house when you pass away or move into long-term residential care.
With an interest-only lifetime mortgage, you pay some or all of the interest each month. This prevents or reduces interest from building up on the loan.
To illustrate the different costs of the two options, let’s look again at someone releasing £30,000.
With an AER of 5% where the borrower does not pay any interest each month and instead lets it ‘roll up’ on a compound basis, the amount of interest owed at the end of ten years (on top of the £30,000 loan) would be £18,866.
If instead the borrower chooses to pay all of the interest each month with an interest-only plan, the amount of interest paid over ten years would be £15,000 (£1,500 per year for ten years). If they were to pass away at that time, their estate would just owe the original loan amount of £30,000, since all the interest would have been paid. That would represent a saving of £3,866 over the ten years.
Note: These are simplified examples for illustrative purposes. You may find that more or less interest accrues on your loan, depending on the lender and product chosen, and the interest rate you are offered. When you enquire about equity release with our selected advisers, they will supply you with a detailed illustration reflecting your circumstances and the recommended lifetime mortgage product.
You will be used to seeing AER (annual equivalent rate) when looking at interest rates for lending. Some equity release lenders will calculate interest annually through an AER, but others will use a method known as monthly compounding. This is why you will see them quote the MER (monthly equivalent rate) instead of AER.
We know that this can appear confusing. But please be reassured that our selected advisers will provide illustrations that explain the terms of any lifetime mortgage they recommend in a clear way so that you can make an informed decision. They will of course also be happy to answer any questions you have about how interest works on equity release.
As with just about every other type of lending, lenders of course add interest to the loan.
This is on a ‘compound interest’ basis, where interest accrues on the original loan amount plus any previously accrued interest. This is also known as roll-up interest.
The interest rate on equity release offered to you is therefore important as it will determine the total cost of the loan. The higher the interest, the less money will likely be left to leave to your loved ones after the sale of your property.
Equity release providers are like other lenders in that they link their interest rates to what’s happening in the economy. In particular, equity release interest rates are linked to rises and falls in the price of government bonds and the return on them (known as gilt yields).
But this isn’t the only thing that can influence a lender’s underlying equity release interest rate. For example, they will also factor in potential future changes in gilt rates, and possible changes in property values.
It’s important to know that not everyone gets the same rate. In fact, the best rates for equity release that you are offered may be below the average current equity release interest rates. This could save you potentially many thousands of pounds in interest over the life of your plan.
This is because as well as looking at gilt rates and other factors to set their underlying equity release interest rates, lenders take into account each applicant’s circumstances when offering them a rate:
Loan to value refers to the relationship between the amount you wish to borrow and the value of your property. Maximum LTV will be the maximum percentage of your property value that providers are willing to lend you. In general, the closer to this maximum you release, the higher the interest rate your lender will offer.
Equity release providers may not charge their best equity release interest rates on certain properties. They take account of factors such as a property’s location, condition and whether they anticipate it is especially likely to significantly increase in value. Sometimes, they will charge a higher rate to reflect the risk they are taking on by lending against a property that falls below their ideal criteria.
Having a past or current medical condition, or making lifestyle choices such as smoking doesn’t usually benefit you. But when it comes to equity release, you might qualify for an enhanced lifetime mortgage that secures you a better equity release interest rate, or lets you unlock more money from your home.
There are hundreds of different equity release products on the market, which means there is great variety in the mix of product features available. These features include:
Sometimes you will find that the best interest rates on equity release plans with features like these are higher than on plans with fewer features. Think carefully about which features you want, and whether the higher interest rate is worth it.
You may find that one provider is unable to offer you equity release if you don’t meet their lending criteria, whereas another provider may accept you. However, the lender that accepts you may not offer the lowest equity release rates.
Some providers may appear to offer the cheapest equity release rate, but at the same time charge higher fees than others. They may even have fees that other providers don’t charge, such as a completion fee. Make sure you take fees into account when you compare equity release interest rates.
Lenders offer most lump sum lifetime mortgages on a fixed rate basis. This means that no matter what happens to equity release interest rates in the future, your interest rate won’t change. Variable rate lifetime mortgages are less common, although may be available to you.
With a drawdown lifetime mortgage – where you take an initial lump sum typically at a fixed rate, followed by further releases as and when you need them – things are slightly different. With these plans, lenders calculate a new fixed rate for each additional withdrawal you make. Your lender will let you know the interest rate each time you apply for a withdrawal.
There will be charges when taking out an equity release plan. Providers may charge some or all of these fees:
However, providers don’t all have the same charging structure. It’s important to compare equity release interest rates AND other costs when considering which plan to choose.
Other fees when taking out an equity release plan include solicitor and adviser fees. You can typically pay some of these fees from the money you borrow, so you may not have to worry about finding them from your existing savings.
Once you’ve taken out a plan, there aren’t usually any further fees. One exception is an early repayment charge that some lenders request if you pay off some or all of your lifetime mortgage early.
As we have explained above, lenders will personalise your best equity release rate to your unique circumstances. You may be able to get a rate that’s better than the market average. Your personal circumstances will have a substantial impact on the rate your lender offers – and each lender will potentially offer a different rate.
By talking to one of our carefully selected advisers, you can check your eligibility and get quotes from leading UK equity release providers.
To find out how much you could borrow, check here or talk to one of our friendly consultants by calling 0808 178 3055 or request a call back. Our initial consultation and appointment with an adviser are free and without obligation, and you are under no obligation to accept any of the quotes you receive*.
You will need to be a homeowner to qualify for equity release, but you don’t need to have paid off all your mortgage. In fact, equity release is a way you could potentially pay off your mortgage AND stay in your home for life.
To find out more about equity release or arrange a consultation with an adviser, please call or request a call back and we’ll be happy to help further.
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Request a call backMaking sure you receive a superb service and great equity release advice is a priority for us. That’s why we have carefully selected equity release specialists who consistently receive excellent customer feedback.
“Very friendly and professional.”
Excellent service. Staff very friendly and professional. Process took about 7 weeks which was very good. Any questions were answered quickly. Very happy with the service.
“I would recommend with no reservations.”
Everything clearly explained and all questions answered. It seemed no trouble for them at all so I would recommend them with no reservations.
“Nothing was too much trouble.”
They kept me informed every step of the way on the status of my application, were always polite, professional and very very friendly. Nothing was too much trouble and they were always more than happy to answer any questions I asked.
It’s important to understand and accept the interest rate your lender offers before going ahead with your plan.
However, should rates fall significantly in the future, you may be able to switch to another equity release plan to take advantage of lower rates.
Switching equity release plans will typically be an option after you’ve had your plan for one year. It could get you a better deal if the best interest rates for equity release come down, or if your circumstances change such that a provider will offer you a better rate. For example, if you develop a health condition that qualifies you for enhanced equity release terms. You may also be able to release additional tax-free cash during your switch.
But switching to a new plan will incur costs such as the new lender’s fees, legal/solicitor fees and an advice fee. There may also be an early repayment fee payable to your existing lender. You would therefore need to weigh up the benefits of switching against the fees involved.
Find out if you qualify for equity release and how much you could borrow. Just click ‘Get started’ or call us on 0808 178 3055 and one of our team will be delighted to help arrange a free consultation and quote*.
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Still unsure of a few things? We’ve got you covered with answers to some of our most frequently asked questions.
Completion of an equity release plan is typically 6–8 weeks after you submit your application with your adviser. Each application is different of course, and sometimes things do go ahead much sooner or take longer. For example, applications that are more complicated may take longer, due to factors such as property valuation issues or leaseholders being involved.
If it’s especially important that your application completes as soon as possible, please mention this to our selected advisers and they will do everything possible to help.
For most people, an important reason for taking out a lifetime mortgage is that they won’t have to repay the loan until the home is sold when they pass away or move into long-term care. However, equity release providers recognise that people’s circumstances may change, and that you may choose or need to pay back the loan earlier.
Early repayment charges will often apply, and these will be explained to you when you receive advice on lifetime mortgages. However, charges are often waived in certain circumstances and our selected advisers can explain the relevant terms and conditions of each lifetime mortgage product they present to you.
Just as with a normal residential mortgage, you should be aware of costs involved in setting up an equity release plan. Your adviser will make sure you understand these in full before you decide whether to take out a plan, but below is a summary.
Your lender will typically charge valuation, arrangement and completion fees, with further fees payable to the solicitor who acts for you. Some of these fees can be paid from the money you borrow, so you may not have to worry about finding them from your existing savings.
Our selected advisers naturally charge an advice fee – but remember that any initial advice or information you receive from them is completely free and without obligation. You only pay them a fee if you apply AND your case completes.
Once a plan is taken out, there aren’t normally any fees. One exception is an early repayment charge that some lenders request if some or all of a lifetime mortgage is paid off before you pass away or move into long-term care.
As with any financial decision, there are of course pros and cons of equity release. Although it has helped thousands of people to access tax-free cash in or close to retirement, it’s important to fully understand the advantages and disadvantages of equity release before deciding if it’s right for you; Here are some potential risks you need to be aware of:
Equity Release Wise can connect you with a highly trained and knowledgeable adviser who will take the time to explain everything to you, so you can be absolutely sure about your decision.
We hope this information has been useful. To find out more or arrange a consultation with an adviser, please call or request a call back and we’ll be happy to help further.
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Request a call back+ Client testimonials refer to the service provided by our selected equity release advisers. We have changed the clients’ names and certain identifying information to protect their privacy.
Please note that equity release will involve a home reversion or a lifetime mortgage, which is secured against your property and will reduce the value of your estate and impact funding long-term care. To fully understand the features and risks, ask for a personalised illustration. Equity release requires paying off any existing mortgage. Any money released, plus accrued interest would be repaid upon death, or moving into long term care.
