Lump sum equity release - Finder UK

Lump sum equity release

A lump sum lifetime mortgage unlocks the equity in your home and puts off repaying the loan plus accrued interest until the house is sold. Compare providers and uncover the pros and cons.

Compare providers and interest ratesQuick comparison
How does lump sum equity release work?Learn more

Table: sorted by the lowest AER from each brand included. Please use the filters to tailor the table to what you need.

Data updated regularly
Name Product Product type Rate type Maximum LTV Monthly rate Annual rate (AER)
Sovereign Lump Sum A
Lump sum
Fixed
9.5%
2.34%
2.37%
Capital Choice Ultra Lite Lump Sum
Lump sum
Fixed
9.5%
2.47%
2.5%
Scottish Widows LS1
Lump sum
Fixed
28%
2.54%
2.57%
Sovereign Lump Sum A
Lump sum
Fixed
9.5%
2.34%
2.37%
Classic Elite Lump Sum Super Lite 2
Lump sum
Fixed
9.5%
2.35%
2.38%
Classic Elite Lump Sum Super Lite 2
Lump sum
Fixed
9.5%
2.35%
2.38%
Classic Elite Lump Sum Super Lite Plus 2
Lump sum
Fixed
9.5%
2.36%
2.39%
Classic Elite Lump Sum Super Lite Plus 2
Lump sum
Fixed
9.5%
2.36%
2.39%
loading

Compare up to 4 providers

We work with Age Partnership, one of the UK’s leading equity release specialists, which scours more than 500 deals to find the best equity release products. We compare only lifetime mortgages, and do not compare any home reversion plans. To understand the features and risks of lifetime mortgages, ask for a personalised illustration from a lifetime mortgage company. Check that this type of mortgage is suitable for your needs if you plan to move or sell your home or you want your family to inherit it. If you're not certain, seek independent advice. Your home may be repossessed if you do not keep up repayments on your mortgage.

What is lump sum equity release?

A lump sum lifetime mortgage is a form of equity release that lets you unlock the value you have in your own house via a one-off lump sum loan. This can then be used to cover any worthwhile expenses, such as home improvements, holidays or other purchases.

How does a lump sum lifetime mortgage work?

A lump sum lifetime mortgage lets you take out a loan against some of the equity you’ve built up in your home, which is then paid to you in full at the start of the loan. Unlike a regular mortgage, you don’t need to make monthly interest payments, instead the loan is repaid in full (along with any accrued interest) only once the house is sold.

Like other types of equity release, you’ll need to be at least 55 years old and own a home that has a value of at least £70,000 to be eligible for a lump sum lifetime mortgage.

What are the pros and cons of a lump sum lifetime mortgage?

Pros

  • Lets you unlock the equity you own in your home
  • You’ll receive the full loan amount upfront
  • You won’t need to make monthly repayments

Cons

  • Interest will compound, meaning you’ll pay more in interest over the life of the loan
  • The loan is repaid using the proceeds from your home’s sale, which reduces the size of your estate
  • Equity release can complicate your tax position

How much do I need to repay each month with a lump sum lifetime mortgage?

Unlike other types of lifetime mortgage (such as interest-only lifetime mortgages), you do not need to make any monthly repayments on a lump sum lifetime mortgage. While interest will begin to accrue from the start of the loan term, it does not need to be repaid until the loan term ends, which normally occurs when the property is sold.

However, there are some related fees that you’ll likely need to pay when you apply for a lifetime mortgage:

  • Advice fee
  • Valuation fee
  • Legal fee
  • Application fee

What are the best rates for lump sum equity release?

Lump sum lifetime mortgages typically come with fixed APRs from 2-6%, but the rate you receive will vary based on factors like your age and personal situation, the value of your home (and the size of your loan), as well as whether you choose to make any optional or early repayments.

Eligibility criteria

You’ll need to be at least 55 years old and own a home with a minimum value of £70,000 to qualify for a lump sum lifetime mortgage. Depending on your broker or lender, you may also need to meet other eligibility requirements in order to apply.

How to apply for a lump sum lifetime mortgage scheme

When applying for a lump sum lifetime mortgage, you’ll generally need to go through a recognised equity release adviser or expert, who can explain your loan options in more detail. Some brokers and advisers also offer fee-free consulting.

Once you’ve compared your options, you can check your eligibility and apply for a quote, before you begin the formal application process.

Promoted
Age Partnership

Age Partnership

  • FREE equity release online calculator
  • Rated Excellent By Over 5,900 People
  • Compare the whole of the market

Frequently asked questions

More guides on Finder

  • Chain break finance

    Everything you need to know about chain break finance – a type of bridging loan that stops you losing your dream home if the sale of your existing one falls through.

  • Fix and flip

    In-depth guide to fix and flip and how this type of property investment works, including the factors you need to consider, the risks to be aware of and how to finance it.

  • Hard money loans: Short-term finance in the UK

    Everything you need to know about hard money loans – also known as bridging loans. Find out how they work, what they can be used for and their benefits and downsides.

  • 100% bridging loans: How to get

    In-depth guide to 100% bridging loans, including how bridging loans work, how to borrow 100% of the property’s value, how to get the best deal and the pros and cons.

  • Loans for small businesses affected by coronavirus

    Learn about government support and alternative options for businesses needing finance to help deal with the impact of coronavirus.

  • Why it pays to be a patient investor

    One way to develop healthy investing habits is to make regular contributions to your investment pot over a period of time, instead of investing a large lump sum. This is called “pound-cost averaging”. It’s a way of investing without trying to time the market.

  • Compare bridging loans to buy land

    Find out if a bridging loan could be a good option versus other types of finance if you’re buying land. We explain the pros and cons and how to get the best deal.

  • Compare residential bridging loan rates

    Everything you need to know about residential bridging loans, including what to consider before taking one out, what they can be used for and their pros and cons.

  • Auction finance: Compare bridging loan rates

    Everything you need to know about auction finance, including why it can be a good alternative to a mortgage, its downsides and where to go to get the best deal.

  • Equity release solicitors

    Find out whether you need an equity release solicitor, how to find one and how much it’s likely to cost in fees.

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked
    Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

    Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
    Go to site