Drawdown Lifetime Mortgage Rates 2026 — Updated October 2026
- Lifetime mortgage rates, October 2026
- 6.2%–7.5% AERLifetime mortgage rates, October 2026
- Interest is charged only on money taken
- Drawn funds onlyInterest is charged only on money taken
- Usual minimum withdrawal
- £2,000–£5,000Usual minimum withdrawal
- Saved vs a £100,000 lump sum over 15 years
- c.£28,500Saved vs a £100,000 lump sum over 15 years
Important: Equity release is a long-term commitment and will reduce the value of your estate. It may affect entitlement to means-tested benefits. Independent financial and legal advice is required. All plans recommended are from Equity Release Council approved lenders. Your home may be repossessed if you do not maintain required payments on a secured loan.
A drawdown plan releases an initial amount and holds the rest as a reserve you draw later. You pay interest only on what you have taken, which usually makes it cheaper than a lump sum. Rates on later withdrawals are the rates on offer when you draw.
What a drawdown lifetime mortgage costs: worked example
- Lump sum: £100,000 taken now, owed after 15 years
- £260,830
- Drawdown: £60,000 now and £40,000 in year 5, owed after 15 years
- £232,292
- Drawdown saving
- about £28,500
£100,000 at 6.6%, interest rolled up, over 15 years
A free, no-obligation later life lending review with a qualified adviser
The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
- Enquiry type
- Later Life Lending
- About
- Drawdown Lifetime Rates
No upfront fees on loans over £1m.
Enough detail to price it is the amount, the security, the purpose and how you plan to repay. The rest we can fill in on a call.
Whole of market · 130+ lenders · FCA 814533 · Same working day response
Rate context and outlook
Lifetime mortgage rates are fixed for life and are priced from long-dated gilt yields, which rose in September alongside other market rates. Bank Rate is 3.75% after the 17 September hold, with the next decision on 5 November.
Retirement interest-only and retirement mortgages follow the wider mortgage market, where fixed rates rose in September. Rates are indicative and depend on age, property value and the amount released.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
Is the reserve guaranteed?
Not always — lenders can withdraw or change reserves; check the terms.
Is there a minimum withdrawal?
Usually £2,000–£5,000.
What rate applies to later withdrawals?
The lender's rate on the day you draw, which may be higher or lower than your first rate.
Does the reserve cost anything if I don't use it?
No — interest is charged only on money taken.
Can I combine drawdown with paying interest?
Yes, many plans allow voluntary payments too.
What is the minimum age?
55 for lifetime mortgages; many RIO and retirement mortgage lenders start at 50–55.
What happens when I die or move into care?
The loan is repaid from the sale of the home, usually after the last borrower dies or moves into long-term care.
Will it affect my benefits?
Releasing cash can affect means-tested benefits; your adviser will check this before you proceed.
Can my family still inherit?
Yes, what remains after the loan is repaid, and some plans let you protect a percentage of the property's value.
Do I need advice?
Yes. Equity release must be arranged through a qualified adviser, and we recommend involving your family.
Where this applies
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. Advice is provided by a qualified equity release adviser. Check that this mortgage meets your needs if you want to move or sell your home, or want your family to inherit it.
Get a free later life lending review for your case
Independent whole-of-market advice · FCA No. 814533