Blog > New features make equity release more flexible

New features make equity release more flexible

By Richard Groom • 29th January 2025 • 3 min read

Is 2025 set to be a year of more innovation?

Written in line with our editorial policy.

Equity release providers brought a new level of innovation to later life lending in 2024. If the trend continues, it’s good news for consumers aged 55+ looking for ways to unlock some of their property wealth in 2025.

As the dust settles on 2024, it’s clear that it was an eventful year when it comes to personal finance. Persistent uncertainty about inflation, the cost of living and interest rates meant that many consumers faced significant challenges in managing their finances.

Many people continued to struggle to keep up with day-to-day expenses such as groceries, housing and energy. The impact was felt by over 55s who, for one reason or another, lacked the savings or income to achieve the lifestyle they want.

Perhaps in response to these challenges, some equity release providers took another look at their products in 2024 and made changes to improve their flexibility, or to reduce the cost of borrowing.

Meeting customer needs

Writing for Mortgage Strategy in December, Chris Bibby says: “Providers have transformed their products to meet customer needs. Lifetime mortgage lenders have tackled the need for innovative new products by offering higher LTVs, shorter early redemption charges and increased flexibility around regular payment options.”

He mentions the development of ‘payment term’ lifetime mortgages. These give borrowers the option of making interest payments initially, for example while still in work, and then stopping these payments when income falls in retirement.

Also in December, Edward Payne wrote on Mortgage Soup: about developments in the wider later life lending market: “Solutions in this market have expanded considerably driven by a combination of competition, regulatory review and necessity. 

“You can now obtain interest serviced options for lifetime mortgages, more flexible RIO (retirement interest-only) products with a more sensible view being taken regarding survivor income by some lenders and mainstream repayment and interest only mortgages that will go up to age 80 and beyond.”

Writing for Mortgage Strategy earlier this month, Paul Glynn sums up 2024 as “a pivotal year for flexibility in later-life lending”. He continues: “Evolving product criteria, coupled with proactive advice, have reshaped this narrative, enabling advisers (and clients) to look at lifetime mortgages much more as adaptable financial tools.”

Recapping 2024’s product innovation 

Here at Equity Release Wise, we reported on a number of examples of development and innovation in the equity release sector in 2024. 

In June, for example,  we reported on equity release product updates from Pure Retirement, LV= and Standard Life.

Pure Retirement had refreshed its ‘Emerald’ range of lifetime mortgages with customer-focused improvements of minimum drawdown amounts, early repayment charges and cash release loan-to-values (LTVs). They also increased its maximum age for applicants to 90, raised the maximum initial advance to £1.5m, relaxed lending criteria for people owning flats and maisonettes, and removed its arrangement fees.

LV= had relaxed restrictions on people releasing equity from properties adjacent to, or above, commercial premises. They also relaxed restrictions on properties in certain flood zones, and on certain listed properties.

Standard Life had also increased its LTVs. That was in addition to launching a feature enabling partial capital repayments from the outset of taking one of its Horizon 650 plans, with fixed early repayment charges for eight years.

In October, we looked at a ‘groundbreaking’ lifetime mortgage from more2life. Their ‘Maxi Zero ERC’ plan does away with early repayment charges altogether. This means that borrowers can repay their lifetime mortgage early without facing additional costs. That could mean a saving of thousands of pounds for people whose circumstances change after taking out a lifetime mortgage, such as getting a windfall or deciding to move home.

A few days later we reported that Pure Retirement had added an interest payment option to its Heritage plans. This gives their customers the option of making monthly payments towards the interest on their lifetime mortgage. This reduces the overall debt and the cost of borrowing and protects more of the equity in a customer’s home for passing on to beneficiaries.

In November, there was news that more2life had also launched an interest servicing lifetime mortgage. Their ‘Apex Interest Reward’ plan offers interest rate discounts for as long as a customer makes partial interest payments.

Looking ahead

So, what lies ahead for the later life lending market? One lender at least is signposting towards further innovation. Ben Waugh of more2life says in a Financial Reporter article that his company’s innovations in 2024 were “just the first of several different product options which are tailored for a new era of later life lending customer”. He goes even further and says that “a revolution has begun and is continuing in the later life lending product space”.

We’ll leave the last word to David Burrowes, Chair of the Equity Release Council. He has this to say about product innovation in the equity release sector: “Property wealth has long been one of the most significant assets available to UK households. Advances in lifetime mortgage product design have made it significantly more attractive to access and are likely to be seen in years to come as a major milestone in bridging the gap between residential homeowner mortgages and the later life market.”

What do you need from equity release?

With growing innovation and choice in equity release products, it’s important to compare plans before making a decision. Different lenders offer varying interest rates, repayment terms and additional features. By exploring and considering your options, you can find a plan that suits your unique needs and fits your financial goals.

To explore which equity release product might best suit your needs, speak to one of our selected advisers who can compare a range of plans on your behalf. 

To find out if you might be eligible for a plan, talk to one of our selected advisers by calling 0808 178 3055 or request a call back.

About Richard Groom. A writer with 20+ years’ experience across several sectors including financial services, Richard has a passion for writing clear and simple content on even the most complex of subjects. In his spare time, Richard loves exploring the hills and mountains of the UK on long walks with his faithful cocker spaniel. Follow Richard on LinkedIn

How can we help?

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.

Let’s talk

Let us help with your questions or arrange a quote.

Call 0808 178 3055

Request a call back

Book a call at a time that suits you and we’ll call you back.

Request a call back

Are you eligible?

Find out how much tax-free cash you could release.

Check now

Apply for your no-obligation equity release quote

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*.

Start your quote journey icon

1. Start your quote journey

Simply click ‘Get started’ to begin your search for the best plan for your circumstances.

Tell us what you need icon

2. Tell us what you need

Fill out some simple details about your situation so we can start to prepare your quote.

Compare your best deals icon

3. Compare your best deals

You’ll get personalised quotes tailored to your unique circumstances and goals.

Related blogs

Read more about equity release and other consumer finance matters.