Royal London offers the most popular type of equity release, a lifetime mortgage. All Royal London lifetime mortgages meet the Equity Release Council standards and, therefore, afford you their protections.
In February 2024, The Royal London Mutual Insurance Society Limited (Royal London), the UK's largest life, pensions, and investment mutual, announced it completed the acquisition of the later life product specialists Responsible Lending.
Responsible Lending is the exclusive Royal London Equity Release product range provider. We advise and arrange Royal London equity release plans with Responsible Lending.
Essentially, if you have ever considered Royal London or Responsible Lending for an equity release, they are the same.
Let's review:
Royal London offers variable live pricing on its lifetime mortgages, meaning that it offers the best interest rate for the specific amount of money that you need.
We typically find that Royal London offers some of the most competitive equity release interest rates in the market. However, other lenders often provide more money at lower interest rates.
The interest rate available with Royal London is based on:
- Your age(s)
- Your property address
- Your property type
- Your property value
- The amount of money that you need
- How much money you want in reserve (if any)
Below is a snapshot of interest rates that were available on 30 September 2024.
| Range |
Product |
Monthly equivalent rate (MER) |
Loan Amount (Maximum available at this rate) |
| Lifetime Mortgage | Lump Sum | 6.99% * | Show Me |
| Principal Lifetime Mortgage | Lump Sum | 7.14% * | Show Me |
* Royal London and other lenders offer variable live pricing. Please request your personalised illustration for your best rate.
Please complete the equity release calculator below to find out your personalised interest rate. One of our experienced equity release advisors will request your personalised interest rate and compare it to other equity release plans across the market.
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Royal London offers the most popular type of equity release plan, the lifetime mortgage. Their lifetime mortgages are split into three different products.
Let's explore some criteria and features in greater detail:
Core Standard
lifetime mortgage |
Core Premier
lifetime mortgage |
Principal
lifetime mortgage |
| Fixed-for-life interest rates from % MER |
Fixed-for-life interest rates from % MER |
Fixed-for-life interest rates from % MER |
| Can apply if aged 55-84 |
Can apply if aged 55-89 |
| Property value £125,000 to £2,000,000 |
Minimum property value £2,000,001 |
Property value £125,000 to £2,000,000 |
| Minimum loan £10,000 |
Minimum loan £100,000 |
Minimum loan £30,000 |
| Add a cash reserve to access money later |
Lump sum only |
| Optional payments of up to 10% each year |
| Downsizing protection |
| Significant life event waiver |
| Fixed early repayment charges for 15 years |
Fixed early repayment charges for 10 years |
| Free valuation on initial advance |
Useful features offered by Royal London
Downsizing protection: With Royal London lifetime mortgages, if the loan is repaid after five years because you move home and you cannot port your lifetime mortgage because your new home does not meet lending criteria, an Early Repayment Charge (ERC) is not applied.
Significant life event waiver: For joint applications, if you repay the lifetime mortgage following the first borrower passing away or moving into long-term care, an Early Repayment Charge (ERC) is not applied.
Partial repayments: You can repay up to 10% of the loan amount each year without penalty on all Royal London lifetime mortgages. Your annual allowance is renewed on the anniversary of the date the borrowing completes. Any unused balance does not roll over into the following year.
Royal London's equity release underwriting
Flexible property underwriting: Royal London will review properties on an individual basis when determining if they will lend. They are most flexible on their Principal lifetime mortgage.
High-Value Properties: Royal London's Core Premier lifetime mortgage is designed for properties over £2,000,000, with minimum loans of £100,000. This allows clients with high-value properties to access even lower interest rates.
Free valuations: All Royal London equity release plans offer free valuations on initial borrowing.
I love this feature because it takes all the risk away from you. If there are any unforeseen issues with the survey, you will not have to pay anything upfront, and you will not be liable for paying a penny should you decide not to proceed.
Arrangement fees: There are no arrangement fees on any Royal London lifetime mortgages.
Big brand: Royal London is a household name with a strong reputation and a long trading history.
This can provide you with great peace of mind when taking a plan that could last the rest of your life!
Royal London's equity release plans are strong but may cost more than alternatives from other lenders.
Royal London is also less flexible than other lenders regarding properties in high flood-risk areas, applicants with poor credit, or where you run a business from home.
The Royal London Principal lifetime mortgage currently only provides lump sums of money; no reserve facilities are available.
As part of our equity release advice service, we will consider plans from Royal London and compare them to other equity release lenders.
Please speak with one of our equity release advisors for your personalised illustration.
Royal London is a household name and a popular equity release lender. Benefits of their plans include:
- Downsizing protection
- Significant life event waiver
- Reserve facilities, and
- free valuations.
However, you may be able to achieve larger loans and lower interest rates from other equity release lenders. Furthermore, Royal London does not offer medically underwritten lifetime mortgages.
When you are ready, you can book an appointment with one of our equity release advisors, who can show you how Royal London compares to other lenders for your specific needs.
If you have an existing equity release plan with Royal London, we can help you assess the best way to borrow additional funds.
Where you have a reserve facility in place (from a drawdown plan), you can contact Royal London directly on 0330 124 3914 to request additional funds.
However, I always suggest that you compare additional borrowing with Royal London to the cost of moving to a different lender.
We will require your authority to discuss your existing plan with Royal London. Please complete the form below so that we can send you a Letter of Authority to complete, sign, and return so that we may speak with Royal London.
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Why don't I just go to Royal London directly?
Of course, you can go to Royal London directly to request their lifetime mortgages. However, you still require financial advice before taking one of their plans, and they do not currently have any directly employed advisors. Instead, Royal London will put you in touch with a financial advisor who will only advise you on Royal London's equity release plans.
If you choose to work with an advisor who works with other lenders, you could be able to access a more suitable lifetime mortgage from another provider.
But won't I get a better deal by going direct?
The interest rates charged, and the amounts of money you can release will be the same regardless of if you go direct, or through another advice firm.
In closing
I hope that I have provided you with an understanding of Royal London's equity release product offering. And hopefully, you have an idea of whether you could be a Royal London equity release client. If you have further questions surrounding Royal London's equity release plans or would like to see if Royal London is the plan I would recommend for you, contact us on 0207 158 0881.
Remember we compare plans from other equity release lenders too, so we can save you time shopping around, and find the most suitable plans for you. You can also use our equity release calculator to compare the lowest rate plans.
If you have further questions, why not speak with one of our qualified advisors?
Call us on 0207 158 0881 or use our online form to book your FREE consultation.
While a qualified equity release advisor has written this guide, it is not intended to be used as financial nor legal advice and should not be relied upon.
To understand the full features and risks of an Equity Release plan, ask for a personalised illustration.
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