Lifetime Mortgage Rates 2026 — Updated October 2026
- Lifetime mortgage rates, October 2026
- 6.2%–7.5% AERLifetime mortgage rates, October 2026
- Almost all lifetime mortgages
- Fixed for lifeAlmost all lifetime mortgages
- Minimum borrower age
- From age 55Minimum borrower age
- On Equity Release Council plans
- No-negative-equity guaranteeOn Equity Release Council plans
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 lifetime mortgage is the main type of equity release: you borrow against your home from age 55, the rate is fixed for life, and the loan is usually repaid when the home is sold. In October 2026 rates run 6.2%–7.5% AER, with the lowest rates for older borrowers releasing smaller percentages.
Lifetime Mortgage Rates by Plan Type — October 2026
Swipe the table sideways to see every column.
| Plan type | Indicative rate | How interest works |
|---|---|---|
| Lump sum | 6.2%–7.5% AER | Rolls up on the whole amount |
| Drawdown | similar; reserve at the rate applying when drawn | Rolls up only on money taken |
| Interest-paying (voluntary) | often slightly lower | Pay some or all interest monthly |
| Enhanced (health-related) | case by case | Higher release amounts |
What a lifetime mortgage costs: worked example
- Amount released
- £120,000
- Rate
- 6.5%, fixed for life
- Monthly payments
- None
- Owed after 15 years
- £308,621
£120,000 lump sum at 6.5%, interest rolled up
Paying half the interest monthly would limit growth dramatically — see Interest-Paying Lifetime Mortgage Rates.
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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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- Lifetime Mortgage Rates
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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.
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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
Is the rate fixed?
Yes — almost all lifetime mortgages are fixed for life; some variable plans have a cap.
Can I repay early?
Many plans allow 10%–40% a year without charge; beyond that early repayment charges can apply.
Will my family inherit anything?
The loan is repaid from the sale; some plans let you protect a percentage of the value.
What is the difference between equity release and a lifetime mortgage?
A lifetime mortgage is the main type of equity release; the other, home reversion, sells part of your home instead of borrowing.
How are lifetime mortgage rates set?
From long-dated gilt yields and lender funding costs, then adjusted for your age and the percentage released.
Is there a no-negative-equity guarantee?
Yes, on plans meeting Equity Release Council standards: you will never owe more than the home sells for.
Can I move home?
Most plans are portable to a new property that meets the lender's criteria.
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