Lloyds Equity Release

Lloyds Equity Release can provide funds from the value of a home while the owners continue to live there. The funds can cover one main cost or several plans.

• Remain at home after the money has been released.
• Receive a free valuation of the property.
• Use the funds for repairs, renovations or other home improvements.
• Clear an existing residential or interest-only mortgage.
• Secure a rate of 4.79% fixed for life.
• Release tax-free money from the value of your home.
• Make no monthly payments, or pay the interest each month.

A free, no-obligation enquiry can show the amount available and the choices that fit your plans. Complete the form below with the estimated value of your home and the amount you would like.

How Lloyds Equity Release works

The loan is secured against the property. Money can be taken as a single payment, or a smaller initial amount can be combined with a reserve for later use.

The homeowner keeps ownership of the property and can continue living there. The released funds are deposited into a bank account once the valuation, advice, and legal work are complete.

People comparing the similarly named options can read the guide to Lloyds Bank equity release options.

Clearing an existing mortgage

An existing mortgage can be repaid from the released funds. This can help when an interest-only mortgage has reached the end of its term, and the original capital still needs to be cleared.

The solicitor normally sends the required amount to the current lender at completion. Any money remaining after the mortgage is settled can be paid to the homeowner.

A regular-payment alternative is explained on the page about Lloyds Bank lifetime interest-only mortgage features.

What decides the amount available?

A free home valuation sets the property figure used for the lending calculation. The valuer considers the type of home, its condition, tenure, location and nearby sales.

The loan-to-value ratio compares the amount borrowed to the assessed value. At a maximum loan-to-value of 70%, a home valued at £300,000 could support borrowing of up to £210,000.

The full maximum need not be taken. A smaller amount can leave more equity unused and keep the initial balance closer to the current need.

Longer-term plan details are available in the Lloyds Bank lifetime mortgage guide.

Monthly payments are optional

A standard lifetime mortgage does not require regular monthly payments. The interest can be added to the mortgage balance instead.

Some plans allow voluntary payments. A homeowner may pay some or all of the monthly interest, make occasional lump-sum payments, or pause payments when household spending is higher.

This gives the homeowner a choice between protecting their monthly income and controlling the balance. The page on how Lloyds Bank lifetime interest-only mortgages work offers another way to compare the payment choices.

A budget for the house

Equity release for home improvements can turn property wealth into a practical budget. The money can pay for a new roof, replacement windows, central heating or electrical work.

A larger project might include a new kitchen, bathroom, extension or loft conversion. Smaller changes can improve comfort, such as better insulation, a level-access shower or a stairlift.

Some owners complete the urgent work first and set aside part of the facility for decorating or energy-saving improvements later.

Credit history does not need to be perfect

A low credit score, missed payments, defaults or county court judgments can be included in the enquiry. Later-life lending can place considerable weight on the property’s value and the available equity.

Equity release with bad credit may also provide enough money to clear mortgage arrears or other balances. Providing accurate settlement figures helps the adviser calculate the required amount.

Applicants who want to compare a mortgage based on retirement circumstances can view the Lloyds Bank pensioner mortgage criteria.

Helping the family

Released money can be given to children or grandchildren while the homeowner is alive. It may contribute to a house deposit, education, a wedding, business costs or another family plan.

Equity release and inheritance tax planning can be considered together. The mortgage balance, the value left in the property and any lifetime gifts can form part of a wider estate plan.

A solicitor or tax adviser can deal with the gifting records and estate calculations. The mortgage adviser can explain the borrowing and payment features.

Another later-life route can be reviewed through Lloyds Bank retirement lending options.

Taking all the money at once

A single lump sum is useful when the full amount is needed for an immediate job. It can repay a mortgage, complete building work, or provide a family gift in a single transaction.

A drawdown arrangement starts with a smaller payment and keeps an agreed reserve. Further amounts can be requested when the money is needed.

Interest normally starts on each withdrawal. This can suit a homeowner who expects several costs over several years.

More details about this borrowing style are available on the page explaining how Lloyds Bank lifetime mortgages work.

Equity release or a retirement mortgage?

Equity release can work without compulsory monthly payments. A retirement mortgage typically uses a pension or other regular income to cover an agreed monthly payment.

State Pension, workplace pensions, private pensions and investment income can all help when comparing the two routes. The preferred choice can depend on the amount needed and the level of monthly income the household wants to keep available.

The wider comparison is set out under Lloyds Bank mortgage choices for older borrowers.

Joint owners and the property

Joint homeowners normally apply together. The ages of both owners, the title and the current mortgage balance are included at the start.

Detached, semi-detached and terraced houses can be considered, along with suitable bungalows and flats. The valuer records the construction, condition, tenure and local market.

Where the owners hold the property as tenants in common, the ownership shares can be shown to the solicitor. Leasehold details include the remaining lease term, ground rent and service charges.

Retired joint applicants can also read the Lloyds Bank pensioner mortgage guide.

Before the valuation

The first useful figures are the estimated property value, the amount required and the balance of every loan secured against the home.

The enquiry can also include dates of birth, the property type and a short description of how the money will be used. Recent mortgage statements provide accurate repayment figures.

After the initial discussion, a valuation confirms the property figure. The legal work then deals with the title, the existing lender and payment of the released funds.

People considering another Lloyds-branded route can compare Lloyds Bank borrowing in retirement.

Questions about Lloyds Equity Release

How much can be released?

Borrowing can be available up to 70% of the home’s valuation. The exact amount may depend on the ages of the applicants, the property, and the selected plan.

Can Lloyds Equity Release repay an interest-only mortgage?

Yes. The released money can settle the outstanding capital when the interest-only mortgage reaches the end of its term.

Do monthly payments have to be made?

No. Monthly payments are optional. A suitable plan can allow interest payments or voluntary lump sums when the homeowner chooses.

Can the money be split between different uses?

Yes. One release can cover a mortgage balance, home improvements, family support and a cash reserve.

Lloyds company and contact details

Lloyds Bank plc: Lloyds and Lloyds Bank are trading names of Lloyds Bank plc. The company number is 00002065. The registered office is 25 Gresham Street, London EC2V 7HN. Lloyds Bank plc is authorised by the Prudential Regulation Authority. It is regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Financial Services Register number 119278.

Previous Lloyds Bank plc names: Lloyds TSB Bank plc, Lloyds Bank plc, Lloyds Bank Limited, Lloyds, Barnetts and Bosanquets Bank Limited, and Lloyds Banking Company Limited. The historical names all relate to company number 00002065.

Mortgage provider: New Lloyds mortgages are provided by Bank of Scotland plc. The company number is SC327000. The registered office is The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority. It is regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Financial Services Register number 169628.

Parent company: Lloyds Banking Group plc has company number SC095000 and a registered office at The Mound, Edinburgh EH1 1YZ. Its previous names were Lloyds TSB Group plc and TSB Group Public Limited Company.

HBOS: HBOS plc has a company number SC218813, and its registered office is The Mound, Edinburgh EH1 1YZ. Lloyds Banking Group brought the Lloyds TSB and HBOS businesses together. The regulated mortgage entities are Lloyds Bank plc under number 119278 and Bank of Scotland plc under number 169628.

Website: https://www.lloydsbank.com/
General mortgage enquiries: 0345 603 1637
Lifetime mortgage enquiries: 0345 122 1443
General customer service: 0345 300 0000
Calling from outside the UK: +44 1733 347 007
Legal information: Lloyds Bank legal entities
Telephone directory: Lloyds Bank contact numbers