Compare The Lowers Equity Release Interest Rates: March 2026
The lowest equity release interest rate in March 2026 is currently 6.49%* (MER).
Comparing equity release rates can help you identify which lenders offer the best deals. The following information will help you understand how equity release rates work, how to compare plans, what you can expect to pay and what you can do to reduce the overall cost of the loan.
Try the calculator
Compare current equity release interest rates
What is the typical interest rate for equity release today?
How much interest will I pay on equity release?
Can you reduce the amount of interest on a lifetime mortgage?
Compare equity release rates to get a better deal
How can I find the best equity release rates in 2025?
Compare current equity release interest rates
The table below shows interest rates available on a lifetime mortgage from some of the UK's leading equity release companies.
*If you're viewing this page on a mobile phone, scroll right to see the full table.
| Provider | MER | Type | Product | How much cash could you release? |
|---|---|---|---|---|
| Aviva | 6.50% | Fixed | Drawdown | Calculate now |
| Pure Retirement | 6.49% | Fixed | Drawdown | Calculate now |
| Just Retirement | 6.90% | Fixed | Drawdown | Calculate now |
| Canada Life | 6.78% | Fixed | Drawdown | Calculate now |
Please note: Lifetime interest rates correct as of 5th March 2026, based on a 67 year old releasing £30,000 from a property valued at £300,000. Rates vary by provider & depend on your personal circumstances and whether you prefer a cash lump sum or an income - March 2026 - 6.49% APR exclusive deal through Age Partnership when you use our calculator*.
Individual Equity Release Provider Reviews
The sections below break down some of the providers shown in the comparison table above, using the same information in a clearer format. As always, rates and product availability depend on your age, property value, health, postcode and the amount you want to release.
Aviva
AER: 8.34% • Type: Fixed • Product: Drawdown
Overview
Aviva is one of the best-known providers in the equity release market and offers fixed-rate drawdown lifetime mortgages. On the example shown here, the MER is 6.50%, making it one of the lower rates in the table.
Product Example Used
Fixed Drawdown Lifetime Mortgage
| Provider | MER | Type | Product | Action |
|---|---|---|---|---|
| Aviva | 6.50% | Fixed | Drawdown | Calculate now |
Pure Retirement
MER: 6.49% • Type: Fixed • Product: Drawdown
Overview
Pure Retirement appears in the table with a fixed drawdown product and one of the lowest rates shown on the page at 6.49%.
Product Example Used
Fixed Drawdown Lifetime Mortgage
| Provider | MER | Type | Product | Action |
|---|---|---|---|---|
| Pure Retirement | 6.49% | Fixed | Drawdown | Calculate now |
This example is a fixed-rate drawdown lifetime mortgage, which combines a fixed interest rate with the flexibility to release money in stages rather than all at once.
That can be attractive for borrowers who want to manage how quickly interest compounds, especially if they only need part of the money now and want access to more later.
Just Retirement
MER: 6.90% • Type: Fixed • Product: Drawdown
Overview
Just Retirement appears in the table with a fixed drawdown lifetime mortgage at 6.90% MER. While the rate is higher than some of the other examples shown, it still deserves comparing on overall suitability and features.
Product Example Used
Fixed Drawdown Lifetime Mortgage
| Provider | MER | Type | Product | Action |
|---|---|---|---|---|
| Just Retirement | 6.90% | Fixed | Drawdown | Calculate now |
This example shows a fixed drawdown lifetime mortgage. The fixed rate gives clarity over the borrowing cost, while the drawdown structure may help you release funds as needed rather than borrowing everything on day one.
That can be useful for people who want to phase borrowing over time or keep interest growth under better control.
Canada Life
MER: 6.78% • Type: Fixed • Product: Lump Sum
Overview
Canada Life is shown with a fixed lump sum lifetime mortgage at 6.78% MER in the table above. This differs from the drawdown products listed elsewhere, because the money is taken in one go rather than in stages.
Product Example Used
Fixed Lump Sum Lifetime Mortgage
| Provider | MER | Type | Product | Action |
|---|---|---|---|---|
| Canada Life | 6.78% | Fixed | Lump Sum | Calculate now |
What is the typical interest rate for equity release today?
In the Summer 2025 Market Report, the Equity Release Council stated that the average advertised interest rate was 7.24%; this compared to the lowest rate through Age Partnership of 6.49%.
How much interest will I pay on equity release?
The interest rate charged on equity release is calculated based on a number of factors:
- How much money you want to borrow
- Your credit history
- The provider's lending criteria
- Your age and marital status
The amount of interest you pay in total is calculated based on your original loan, the compound interest you accrued over the life of the mortgage and how long the loan is in place.
Using the calculator to find out how much you could release will also check your basic eligibility for equity release, with no obligation to proceed.
How much cash could you release?
Can you reduce the amount of interest on a lifetime mortgage?
If you want to keep the overall cost of the lifetime mortgage down, you could choose a lifetime mortgage that allows you to repay some, or all of the interest without incurring an early repayment charge. Over half of the products offered by members of the Equity Release Council allow you to do this.
Other optional features that can help include:
Drawdown reserve: This lets you release an initial amount of money and create a reserve account that you can draw down on as and when you need it. You don't owe any interest on the money in your reserve account unless you actually access it, so compound interest accrues more slowly.
Downsizing protection: If you decide to sell your home and move to a smaller property, this protection lets you repay your loan without having to pay an early repayment charge.
How do I compare equity release interest rates?
To compare equity release interest rates, use the table above to review offers from multiple providers. Whether you choose to do it yourself or with the help of a qualified IFA or broker, comparing equity release could help you find the lowest interest rates on the market.
There are a number of things to consider in addition to the interest rate charged:
- Would you prefer to take the money in one go, or a drawdown facility that allows you to hold money in reserve for future use?
- Would you like to guarantee that some equity is left for family as an inheritance?
- Would you like to reduce the overall cost of equity release by repaying some or all of the interest?
So, when you compare equity release, you should also consider how the lifetime mortgage works and the flexibility it offers you - which is where a qualified equity release specialist could help.
How Compound Interest affected equity release?
Equity Release interest compounds over time, meaning you're charged interest on both the original loan and the interest that builds up each year. If you do not make repayments, the total amount owed can grow quickly, which reduces the value of your estate. Because the loan is repaid when your home is sold, the money you release today effectively becomes debt against your property, leaving less for your beneficiaries.
Ashley Shepherd
Over 30 years’ experience in financial services including retirement and later-life planning.
Our equity release expert’s view
How can I find the best equity release rates in 2026?
To find the best equity release rates, you may want to get the help of a specialist IFA or broker who can compare plans on your behalf.
We work in association with Age Partnership, an equity release specialist who compares lifetime mortgage interest rates and products from a selection of the UK’s leading providers. They provide initial advice for free and without obligation. Only if you choose to proceed and your application is completed would a fee be payable - which can usually be taken from the cash sum.
Through their relationships, they have secured preferential lifetime mortgage rates that you may not be able to get elsewhere.
Your Age Partnership adviser will talk through your requirements, fully explain how equity release works, help you consider whether it’s right for you and provide comparisons and a written illustration that you can talk through with your family.
We work with
Our aim is to provide you with clear and accurate information to help you research your chosen financial products and services. The material on this site is for general information only and does not constitute any form of advice or recommendation.
If a link has an * by it, it means it is an affiliated link to an insurance company or broker that may result in a payment to the site. Should you use the equity release calculator, speak to an Age Partnership adviser and take out a plan out using their services, we receive a commission, however this will not affect the price you pay.
Also, from time to time you may see advertisements from third party companies who pay us a fee to advertise their services on our site.
None of the above arrangements constitute advice or recommendations, as other products and companies are available. You should always obtain independent, professional advice for your own situation.
The information provided on this site is accurate at the date of publication, occasionally however, things will change before we have had the opportunity to update them, so please do check. Always do your own research and take independent advice.
We do not investigate the solvency of any company mentioned on our website and are not responsible for the content on websites we link to.
Over50choices is an independent company and regulated by the FCA (No.594280) for insurance products only and a member of the Equity Release Council.