Wondering about Virgin Money equity release?

According to Equity Release Council stats, borrowing went up 32% between the first quarter of 2024 and the first quarter of 2025.¹

If you're considering this popular retirement solution, it makes sense to explore your options—and that includes providers.

If you're a Virgin Money client, could your bank offer you equity release?

Read on to find out.

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

Who Are Virgin Money?

Virgin Money is a UK-based financial services company that offers a range of banking and lending products.

It was originally founded by Richard Branson and has grown into a well-known brand in the UK banking sector.

Virgin Money has been part of Nationwide Building Society since 2024.²

What Services Does Virgin Money Offer?

Virgin Money provides personal and business banking services, including current accounts, savings accounts, mortgages, credit cards, loans, and insurance.

They also offer investment products and financial advice.

Does Virgin Money Offer Equity Release?

Virgin Money does not offer equity release directly, but it does offer clients this option through their partner, Legal & General.³

Why You Should Consider Virgin Money

You may want to consider Virgin Money for equity release through their partner, Legal & General, for various reasons.

These include:

• L&G is a member of the Equity Release Council (ERC), which means its products adhere to strict standards and consumer protections.
• L&G has lent more than £6.84 billion to over 119,000 customers since 2015.
• Moneyfacts named L&G 2024's Best Equity Release Provider.⁴

Equity Release Schemes Available to Virgin Money Clients

Equity release schemes available to Virgin Money clients comprise three lifetime mortgages provided by Legal & General.

These options differ mainly in whether and how payments are made.

Interest Roll-Up Lifetime Mortgage

Legal & General’s Interest Roll-Up Lifetime Mortgage enables homeowners to unlock equity while remaining in their property.

The loan, secured against the home, provides either a tax-free lump sum or smaller, flexible withdrawals, depending on the borrower's needs.

There are no monthly repayments, as interest accrues each month and compounds over time.⁵

Typically, the loan is repaid through the sale of the property when the borrower—or the last surviving borrower, in the case of a joint loan—passes away or moves into long-term care.

Optional Payment Lifetime Mortgage

L&G’s Optional Payment Lifetime Mortgage also allows homeowners to release equity while remaining in their property.

The loan, secured against the home, provides a tax-free lump sum or smaller, flexible withdrawals, with no affordability checks required.

Unlike with the previous option, though, borrowers can make monthly payments ranging from £25 up to the full interest amount, helping to manage costs effectively.

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

With a fixed interest rate, payments remain stable, and there’s no risk of default—borrowers can stop payments at any time, after which interest begins to roll up.

It is important to note that once payments cease, they cannot be restarted, and only six missed payments are permitted.⁶

Payment Term Lifetime Mortgage

L&G's Payment Term Lifetime Mortgage (PTLM) provides equity release for those aged 50+ and offers higher loan-to-value options.

With this plan, borrowers make fixed monthly interest payments for a set period, helping to lower overall costs and potentially increase borrowing capacity.

Payments must continue until at least age 55, after which interest accumulates for the remainder of the loan.

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

As with other lifetime mortgages, the loan is typically repaid through the sale of the property when the borrower—or the last surviving applicant—passes away or moves into long-term care.

Important

Failure to maintain payments could lead to repossession.⁷

Which L&G Lifetime Mortgage to Choose

Which Legal & General Lifetime Mortgage to choose as a Virgin Money client will come down to your unique needs and requirements.

Take a look at this comparison table to help you get started:

	Interest Roll Up Lifetime Mortgage8	Optional Payment Lifetime Mortgage9	Payment Term Lifetime Mortgage10
Minimum Borrower Age	55	55	50
Maximum Borrower Age	90	90	74
Affordability Checks	No	No	Yes
Maximum LTV	52.0%	52.0%	69.5%
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
Monthly Repayments	No	£25 to 100% of interest monthly	Monthly interest payments for a chosen term—potentially up to age 75
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	No
Early Repayment Charges	Fixed or variable	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 L&G’s Equity Release Interest Rates?

Legal & General’s equity release interest rates range from 6.34% (APR) to 8.02% (APR).* 

View the latest equity release interest rates here.

Your actual rate will depend on your circumstances, including your age and how much you want to borrow.

Fixed rates

Legal & General's lifetime mortgage interest rates are fixed, meaning they'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 effect will be especially noticeable 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 L&G’s Fees?

Legal & General’s fees include costs involved with arranging the loan and transferring the funds to your solicitor.¹¹

Here's a summary:

• Arrangement Fee: £599
• Funds Transfer Fee: £30
• Fixed Early Repayment Charges: Starting at 9% of the original loan amount for the first five years.¹²
• Variable Early Repayment Charges: Capped at 25% of the loan amount and linked to movement in the UK FTSE Actuaries 15 Year Yield (the Index).¹³

Borrowers do not have to pay valuation fees when taking out a lifetime mortgage.¹⁴

There are also potential ongoing costs associated with a Legal & General lifetime mortgage.¹⁵

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

To make sure you understand the potential costs of an L&G lifetime mortgage, speak to your equity release advisor.

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

Does Virgin Money Have an Equity Release Calculator?

Virgin Money doesn't have an equity release calculator.

Why not use our free equity release calculator to get an estimate of how much you could borrow through a lifetime mortgage?

Is a Virgin Money/L&G Lifetime Mortgage the Best Option for You?

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

Benefits of Using Virgin Money for Equity Release

Benefits of using Virgin Money for equity release include the fact that you'll be referred to Legal & General, a company with a long history providing lifetime mortgages.

Some pros of using Legal & General:

• Reputation: Legal & General is a highly regarded financial services provider, having won multiple 'Britain's Most Admired Company' awards.¹⁶
• Product Range: L&G offers three distinct lifetime mortgage options, catering to different financial needs.
• Customer Support: The company is recognised for its excellent customer service, with positive client reviews on Trustpilot.¹⁷
• ERC Membership: As a long-standing member of the Equity Release Council (ERC), L&G adheres to industry standards designed to safeguard borrowers.¹⁸

Drawbacks to Using Virgin Money for Equity Release

Drawbacks to using Virgin Money for equity release include the fact that clients can't access these products directly through the bank.

Instead, they'll be directed to Legal & General, Virgin Money's equity release partner.

Some cons to using L&G for equity release:

• Maximum Borrower Age: The Payment Term Lifetime Mortgage has a maximum age limit of 74, restricting eligibility for older applicants.
• Affordability Checks: Applicants must demonstrate affordability when applying for a Payment Term Lifetime Mortgage.
• Regional Exclusions: These mortgage plans are only available for properties in England, Wales, or mainland Scotland.¹⁹
• Early Repayment Charges (ERCs): Like most lifetime mortgages, Legal & General's products include substantial early repayment charges if repaid in full.
• Impact on Inheritance: As with all lifetime mortgages, these plans reduce the value of your estate, affecting the inheritance left to beneficiaries.

Speak to your advisor to get a better understanding of how these factors may be relevant to your situation.

How Did We Review Virgin Money?

We reviewed Virgin Money by perusing their publicly available information and by studying the lifetime mortgages offered by their equity release partner, Legal & General.

Virgin Money Client Reviews

Virgin Money client reviews are available online.

Some examples:

• UK Trustpilot reviews of Virgin Money
• Smart Money People reviews of Virgin Money
• MoneySavingExpert Forum discussions of Virgin Money

Contact Virgin Money

You can contact Virgin Money in a few different ways.

These include:

• by phone (client services): 0800 345 7365
• by phone (general enquiries): 0141 248 7070
• by post: Virgin Money, Jubilee House, Newcastle upon Tyne NE3 4PL

Virgin Money's Regulatory Details

Virgin Money's regulatory details may be of interest if you're considering their services.

Trading Names

• Virgin Money
• Virgin Money Unit Trust Managers Ltd

FCA Permitted Services

• Arranging (bringing about) deals in investments
• Arranging safeguarding and administration of assets
• Dealing in investments as agent
• Establishing/operating/winding up a personal pension scheme
• Making arrangements with a view to transactions in investments
• Managing investments
• Safeguarding and administration of assets (without arranging)
• Arranging (bringing about) deals in investments
• Arranging safeguarding and administration of assets
• Dealing in investments as agent
• Dealing in investments as principal
• Making arrangements with a view to transactions in investments
• Managing a UK UCITS
• Managing investments
• Safeguarding and administration of assets (without arranging)

Regulators

• Financial Conduct Authority (FCA)²⁰
• Prudential Regulation Authority (PRA)²¹

Registration Numbers

• FCA Ref Number: 171748
• Companies House Reg Number: 03000482

FCA & Companies House Link

• FCA Link: Virgin Money Unit Trust Managers Ltd
• Companies House Link: Virgin Money Unit Trust Managers Limited

Common Questions

Conclusion

Virgin Money doesn't offer equity release directly, but clients do have the option too access a lifetime mortgage through Legal & General.

With products like interest roll-up, optional payment, and payment-term lifetime mortgages, you may be able to find a plan to suit your needs.

To get started, it’s essential to seek advice from a qualified equity release adviser who will help guide you through the process, ensuring that you understand all your options and make the best decision for your future.