Equity release features by lender: who offers what

Name: Equity release product feature index
Creator: Richard Parker

Lifetime mortgages are not all the same. Beyond the headline rate, plans differ on whether you can make repayments, how early repayment charges work, whether you can move home, whether you can protect an inheritance, and whether you can take money in stages. This index sets out the common features so you know what to ask for.

Illustrative feature map, by plan type. The table below shows typical features by plan type, not a named-lender comparison. Availability and terms vary by lender and change often, so each entry is to be confirmed against current product sheets before relying on it. One point is fixed, not illustrative: every Equity Release Council member plan carries the no negative equity guarantee.

Illustrative equity release features by plan type
Plan type	Voluntary repayments	Early repayment charge	Downsizing protection	Inheritance guarantee	Drawdown	Enhanced terms	No negative equity guarantee
Standard lump-sum plan	Often, up to ~10% per year	Usually fixed (gilt-linked on some)	Commonly after a set period	Sometimes as an option	No (single lump sum)	Sometimes	Yes (ERC members)
Drawdown plan	Often, up to ~10% per year	Usually fixed	Commonly after a set period	Sometimes as an option	Yes (reserve facility)	Sometimes	Yes (ERC members)
Enhanced / medically underwritten plan	Often, up to ~10% per year	Usually fixed	Commonly after a set period	Sometimes as an option	Sometimes	Yes (health and lifestyle based)	Yes (ERC members)
Inheritance-protected plan	Often, up to ~10% per year	Usually fixed	Commonly after a set period	Yes (ring-fenced share)	Sometimes	Sometimes	Yes (ERC members)

Source: Typical features by plan type, illustrative. To confirm against current lender product sheets and Equity Release Council standards. June 2026

Copy this data as text

| Plan type | Voluntary repayments | Early repayment charge | Downsizing protection | Inheritance guarantee | Drawdown | Enhanced terms | No negative equity guarantee |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Standard lump-sum plan | Often, up to ~10% per year | Usually fixed (gilt-linked on some) | Commonly after a set period | Sometimes as an option | No (single lump sum) | Sometimes | Yes (ERC members) |
| Drawdown plan | Often, up to ~10% per year | Usually fixed | Commonly after a set period | Sometimes as an option | Yes (reserve facility) | Sometimes | Yes (ERC members) |
| Enhanced / medically underwritten plan | Often, up to ~10% per year | Usually fixed | Commonly after a set period | Sometimes as an option | Sometimes | Yes (health and lifestyle based) | Yes (ERC members) |
| Inheritance-protected plan | Often, up to ~10% per year | Usually fixed | Commonly after a set period | Yes (ring-fenced share) | Sometimes | Sometimes | Yes (ERC members) |

Source: Typical features by plan type, illustrative. To confirm against current lender product sheets and Equity Release Council standards. June 2026

What each feature means

Voluntary repayments: The right to make penalty-free payments, often up to a set percentage of the balance each year, to slow or stop interest rolling up.
Early repayment charge (ERC): A charge if you repay early outside the allowance. It can be a fixed percentage that tapers over time, or gilt-linked, meaning it moves with government bond yields and is harder to predict.
Downsizing protection: The right to repay the plan in full without an early repayment charge if you move to a smaller home, usually after an initial period.
Inheritance guarantee: An option to ring-fence a set share of the property value to pass on, regardless of how the balance grows.
Drawdown: Take an initial amount and keep a reserve to draw on later, with interest charged only on what you have actually taken.
Enhanced terms: Better terms, such as a higher amount or lower rate, based on health and lifestyle factors. Also called medically underwritten.
No negative equity guarantee: You and your estate can never owe more than the home sells for. All Equity Release Council member plans carry this guarantee.

How this is measured

Features are grouped by common plan type rather than by named lender, because individual products are updated frequently and a static lender-by-lender grid dates quickly. The entries describe what is typically available, and are intended to be confirmed against current lender product sheets and the Equity Release Council product standards at the point of advice.

Sources to confirm: Equity Release Council product standards (equityreleasecouncil.com), which set the baseline consumer protections including the no negative equity guarantee, the right to remain in the home for life, the right to move to a suitable property, and the requirement for independent legal advice; and individual lender product sheets for the specific terms of each plan. Reviewed and to be signed off by Richard Parker, June 2026.