Interest-Paying Lifetime Mortgage Rates 2026 — Updated October 2026
- Lifetime mortgage rates, October 2026
- 6.2%–7.5% AERLifetime mortgage rates, October 2026
- Pays all the interest on £100,000 at 6.3%
- £525/monthPays all the interest on £100,000 at 6.3%
- Owed after 15 years if all interest is paid
- £100,000Owed after 15 years if all interest is paid
- Owed after 15 years if nothing is paid
- £250,034Owed after 15 years if nothing is paid
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.
You do not have to let interest roll up. Interest-paying and voluntary-payment lifetime mortgages let you pay some or all of the interest monthly, which keeps the debt flat and can earn a slightly lower rate.
Interest-Paying Lifetime Mortgage Rates: 15-Year Comparison — October 2026
Swipe the table sideways to see every column.
| On £100,000 at 6.3% for 15 years | Monthly | Owed at year 15 |
|---|---|---|
| Pay all interest | £525 | £100,000 |
| Pay half the interest | £262 | £159,235 |
| Pay nothing | £0 | £250,034 |
What an interest-paying lifetime mortgage costs: worked example
- Pay all interest (£525 a month): owed at year 15
- £100,000
- Pay half the interest (£262 a month): owed at year 15
- £159,235
- Pay nothing: owed at year 15
- £250,034
- Saved by paying all the interest
- £150,034
£100,000 at 6.3% for 15 years
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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.
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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
What if I stop paying?
Most plans let interest roll up instead, without penalty.
Is this the same as a RIO?
Similar, but a lifetime mortgage never requires payments; see RIO vs Lifetime.
Is affordability checked?
Lenders check you can afford the payments you choose, but missing a payment does not cause repossession.
Do interest payments get a lower rate?
On some plans, yes, by a small margin.
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
Talk to us about
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