With the upturn in equity release lending at the end of 2025 and the gradual increase in house prices¹, Legal & General equity release may be on your mind.

Could you do with the extra cash to help you through retirement or do you need the funds to plan your ultimate bucket-list holiday? 

With many equity release products available on the market today, it’s difficult to know where to start. 

That’s why, as equity release experts, we’ve spent countless hours researching these plans for you. 

Our aim is to bring you the most comprehensive and current information to ensure the decision-making process is that much easier. 

Let’s find out if Legal & General's equity release options could be your perfect match...

COMMENT: TimeBank.org.uk is an independent third-party data provider, and the information shared here reflects their views alone, not necessarily those of Legal & General. This article is for informational purposes only and should not be considered financial advice or a recommendation to engage with any products offered by Legal & General.

Who Are Legal & General?

Legal & General was established in 1836² and is now one of the UK’s leading financial service groups.

Legal & General provides various insurance products, investment options, and retirement planning services to support their customers' financial well-being

What Services Does Legal & General Offer?

Legal & General offers services such as lifetime mortgages, investment management, and more. 

Here is a list of the services it offers:

• ISAs
• Personal pensions
• Lifetime mortgages
• Annuities
• Life insurance

Does Legal & General Offer Equity Release?

Yes, Legal & General offers equity release in the form of a lifetime mortgage. 

A lifetime mortgage enables you to access the money tied up in your home as a tax-free amount. 

You can either access all of the money at once or release it in smaller amounts over a period of time. 

The good news is you won’t have to sell your home or move out to get your hands on the cash. 

The even better news is that you won't be required to make any payments until you move into permanent care or pass away.

Why You Should Consider Legal & General

You may consider Legal & General for your equity release requirements as the company has won multiple awards. 

Some recent awards include:

• Equity Release Awards 2025—Best Provider for Products³
• Mortgage Strategy Awards 2023—Best Equity Release/Lifetime Lender⁴
• Mortgage Finance Gazette Awards 2022—Best Lifetime Mortgage Lender⁵
• Mortgage Solutions Award 2022 - Best Overall Provider of Lifetime Mortgages⁶

Legal & General’s Equity Release Schemes

Legal & General’s equity release schemes include an Interest Roll-Up Lifetime Mortgage, an Optional Payment Lifetime Mortgage, and a Payment Term Lifetime Mortgage. 

Let’s have a look at each of these. 

Interest Roll-Up Lifetime Mortgage

Legal & General’s Interest Roll-Up Lifetime Mortgage lets homeowners access equity without moving.⁷

The loan, secured against their home, provides a tax-free lump sum or smaller withdrawals as needed.

No monthly repayments are required—interest is added monthly, compounding over time.

The loan is typically repaid from the sale of the property when the borrower (or surviving applicant) passes away or moves into long-term care.

Optional Payment Lifetime Mortgage

Legal & General’s Optional Payment Lifetime Mortgage allows homeowners to access equity without moving.⁸

The loan, secured against the borrower's home, provides a tax-free lump sum or smaller withdrawals as needed, with no affordability checks.

Borrowers can make monthly payments from £25 up to 100% of the interest, keeping costs down.

The fixed interest rate ensures payments never rise, and there’s no risk of default—payments can stop at any time, with interest then rolling up.

However

Once stopped, payments cannot be restarted, and only six missed payments are allowed.

This option can help reduce the overall cost of a lifetime mortgage.

Payment Term Lifetime Mortgage

Legal & General’s Payment Term Lifetime Mortgage (PTLM) offers equity release for those aged 50+, with higher loan-to-value options.⁹

Borrowers make fixed monthly interest payments for an agreed term, reducing overall costs and potentially allowing them to borrow more.

When payments stop—no earlier than age 55—interest rolls up for the rest of the loan.

Ideal for those who can afford payments while working but not in retirement, PTLM requires an affordability assessment based on current and future income.

The loan is repaid from the property’s sale when the borrower (or surviving applicant) dies or moves into care.

Important

Failure to keep up with payments could lead to repossession.

Which Legal & General Lifetime Mortgage to Choose

Which Legal & General Lifetime Mortgage to choose will come down to your specific needs.

A comparison table may be a useful starting point:

	Interest Roll Up Lifetime Mortgage10	Optional Payment Lifetime Mortgage11	Payment Term Lifetime Mortgage12
Minimum Borrower Age	55 years	55 years	50 years
Maximum Borrower Age	90 years	90 years	74 years
Affordability Checks	No	No	Yes
Maximum LTV	52.0%	52.0%	69.5%
Monthly Repayments	No	£25 to 100% of interest monthly	Monthly interest payments for a chosen term—potentially up to age 75
Optional Partial Repayments	Allowed up to 10% per year: maximum 12 payments of at least £50 each	Only allowed once loan has converted to roll-up; up to 10% per year	Only allowed after end of Payment Term; up to 10% per year
Inheritance Protection	Available at no extra cost	Available at no extra cost	Available at no extra cost
Drawdown Facility	Available; minimum £1,000	Available; minimum £1,000	Not available
Early Repayment Charges	Choice of fixed or variable	Choice of fixed or variable	Fixed

*The features mentioned and the amounts raised are subject to the lender’s criteria and terms & conditions. Lenders may take into account the borrower's age and their health and lifestyle in order to provide an enhanced amount.

What Are Legal & General’s Equity Release Interest Rates?

Legal & General’s equity release interest rates range from 6.3% (APR) to 7.8% (APR).* 

View the latest equity release interest rates here.

The actual rate you’ll be given depends on your particular circumstances - including your age and how much you want to borrow

Fixed rates

The interest rate on Legal & General's lifetime mortgages is fixed, meaning that it'll remain the same for the duration of the loan period. 

Remember

Interest on lifetime mortgages is calculated on a compounding basis, which means that interest accrues on the principal amount and on any unpaid interest.

This reduces the equity in your home over time.

This is especially true if you take out a loan earlier in your retirement and go on to live for a long time.

*While we regularly review our rates, these may have changed since our last update.

What Are Legal & General’s Fees?

Legal & General’s fees include arrangement fees and a charge for transferring your funds to your solicitor.¹³ 

Let’s take a closer look at these:

• Arrangement Fee: £599
• Funds Transfer Fee: £30
• Fixed Early Repayment Charges: Starting at 9% of the initial loan for the first five years.¹⁴
• Variable Early Repayment Charges: capped at 25% of the loan amount and linked to movement in UK FTSE Actuaries 15 Year Yield (the Index).¹⁵

Borrowers do not currently have to pay valuation fees when taking out a lifetime mortgage.¹⁶

There are also potential ongoing costs associated with a Legal & General lifetime mortgage.¹⁷

These may include:

• Arrangement Fee when transferring a lifetime mortgage to a new property: £540
• Additional Borrowing Arrangement Fee: £155
• Property visit fee: £234
• Closing Administration Fee: £85

Speak to your equity release advisor to make sure you have a full picture of the potential costs of a lifetime mortgage.

*While these fees were accurate at time of writing, they may have changed since our last update.

Does Legal & General Have An Equity Release Calculator?

Yes, Legal & General has an equity release calculator.¹⁸ 

To work out how much you could unlock from your home, you’ll need to enter the following information:

• The age of the youngest borrower
• Your address
• The estimated value of your home
• The amount you would like to borrow

Consider using our free lifetime mortgage calculator to get a comparative estimate and an unbiased result.  

Is a Legal & General Lifetime Mortgage the Best Option for You?

To find out if a Legal & General lifetime mortgage would be the best option for you, start by weighing the pros and cons.

Benefits of Using L&G for Equity Release

The benefits of using L&G for equity release include the company's firm financial foundation.

Other advantages include:

• Reputation: Legal & General is a well-established and trusted financial services company and has won consecutive 'Britain's Most Admired Company' awards.¹⁹
• Range of Products: L&G offers three different lifetime mortgage products to suit different needs.
• Customer Support: The company is praised for excellent customer service and support in client reviews on Trustpilot.²⁰
• ERC Membership: L&G is a longstanding member of the industry body the Equity Release Council (ERC), which sets product standards that protect borrowers.²¹

Of course, it's just as important to review the potential risks and downsides of L&G products.

Drawbacks to Using L&G for Equity Release

Drawbacks to using L&G for equity release include limitations associated with their products.

Potential downsides:

• Maximum Borrower Age: The 74-year age limit on the Payment Term Lifetime Mortgage limits who will be able to apply.
• Affordability Checks: Borrowers applying for a Payment Term Lifetime Mortgage will have to prove affordability.
• Regional Exclusions: These plans are only available on properties located in England, Wales or mainland Scotland.²²
• ERCs: As with most lifetime mortgages, L&G's products come with Early Repayment Charges that can be substantial if you decide to repay your loan in full.
• Impact on Inheritance: Like all lifetime mortgages, these plans reduce the value of your estate and affect the inheritance you can leave.

When speaking to your equity release advisor, you'll be able to discuss these pros and cons and how they may apply to your situation.

How Did We Review the Info on Legal & General?

We spent hours gathering all available information on Legal & General and their lifetime mortgage products so we could give you a condensed, easy-to-read version of their offering.

Legal & General Client Reviews

Legal & General client reviews are mixed across different online platforms.

Here are ratings from the top review sites:

• UK Trustpilot Reviews for Legal & General
• Customer reviews for Legal & General on Reviews.io
• Smart Money People client reviews of Legal & General Life Insurance
• Smart Money People client reviews of Legal & General Pension

Contact Legal & General

Legal & General can be contacted by email, post, or phone.

For any query related to equity release, you can contact the retirement department on the below contact details:

• Email: customerservices@landghomefinance.com 
• Post: Legal & General Home Finance, PO BOX 17225, Solihull B91 9US.
• Phone: 0808 163 7522.

Legal & General's Regulatory Details

Legal & General's regulatory details may be of use to you as you do your research on equity release options.

Trading Names

• Legal & General Home Finance Limited
• Legal & General Home Finance

FCA Permitted Services

• Administering a regulated mortgage contract
• Arranging (bringing about) regulated mortgage contracts
• Dealing in investments as principal
• Entering into a regulated mortgage contract as lender
• Making arrangements with a view to regulated mortgage contracts
• Dealing in investments as principal

Regulators

• Financial Conduct Authority (FCA)²³
• Prudential Regulation Authority (PRA)²⁴

Registration Numbers

• FCA Ref Number: 303418
• Companies House Reg Number: 04896447

FCA & Companies House Link

• FCA Link: Legal & General Home Finance Limited
• Companies House Link: Legal & General Home Finance Limited

Legal & General Contact Number & Address

• +44 033 3004 8444
• enquiries@landghomefinance.com
• 4th Floor, Chadwick House, Warwick Road, Solihull, West Midlands B91 2AA.

Common Questions

Final Thoughts on Legal & General Equity Release

Legal & General Equity Release has earned its position as a household name in the later-life mortgage industry. 

The company has also gained recent prominence by raising £510m to invest in affordable housing, a project expected to produce up to 4,000 new homes.²⁵ 

Speak to a qualified advisor to determine if Legal & General equity release could be a suitable solution for you.