Compare Responsible Lending Equity Release Quotes Against The Market

Important Distinction: It is crucial to distinguish between two similarly named companies that operate as part of the same group:

• Responsible Lending: This is the mortgage lender. They provide the actual funds and the mortgage product.

• Responsible Life: This is the mortgage broker (adviser). They give advice to customers and help them find a suitable product.

In 2024, the Responsible Group (which includes both companies) was fully acquired by Royal London, the UK’s largest mutual life, pensions, and investment company.

If you are looking for independent advice about whether Responsible Lending might be the right equity release provider for you, get started with one of our experts below:

About Responsible Lending

Responsible Lending is a specialist UK lender focused exclusively on Equity Release (Lifetime Mortgages). They do not offer standard residential mortgages for buying a house to live in (like a 25-year repayment mortgage).

Their products are designed for homeowners aged 55+ who want to unlock tax-free cash from their property without having to move.

A key feature of their business model is their partnership with Royal London. Responsible Lending is the entity that powers and funds the Royal London Equity Release product range.

Mortgage Products (Lifetime Mortgages)

Responsible Lending offers a range of Lifetime Mortgages, often marketed under the Royal London brand or their own "Responsible" branding.

• Standard Lifetime Mortgages:

  • Lump Sum: You take a single tax-free cash sum at the start. Interest is charged on the full amount immediately.

  • Drawdown: You take a smaller initial lump sum and set up a "cash reserve" facility. You can draw from this reserve in the future as needed. Advantage: You only pay interest on the money you actually withdraw, saving you money in the long run.

• Premier Options:

  • Designed for owners of higher-value properties (typically over £2 million), offering larger loan sizes and bespoke underwriting criteria.

• Key Product Features:

  • Fixed Interest Rates: The interest rate is fixed for life at the point you take the loan (or the point you withdraw from a reserve).

  • Voluntary Payments: Most plans allow you to pay up to 10% of the loan amount each year penalty-free. This helps control the "roll-up" of interest and preserves more equity for your beneficiaries.

  • No Negative Equity Guarantee: As a member of the Equity Release Council, they guarantee you will never owe more than your home is sold for.

  • Downsizing Protection: If you wish to move to a smaller property after a certain period (e.g., 5 years) and the new home doesn't meet their criteria, you can repay the loan without an Early Repayment Charge (ERC).

Pros and Cons of Responsible Lending

Here is a balanced overview of choosing this lender.

Pros:

• Royal London Backing: Being owned by the UK's largest mutual insurer gives them significant financial stability and trust.

• Flexible Repayments: The ability to make voluntary payments is a vital tool for managing compound interest.

• Drawdown Facility: Their flexible drawdown options allow you to keep interest costs down by only borrowing what you need, when you need it.

• Price Match Guarantee: Through their sister company (Responsible Life), they often offer a "Low Price Guarantee," promising to beat quotes from other providers (terms apply).

Cons:

• Intermediary-Only: You typically cannot apply to Responsible Lending directly. You must go through a qualified equity release adviser (either from Responsible Life or another firm).

• Compound Interest: As with all lifetime mortgages, if you do not make voluntary payments, the debt will grow over time, reducing the inheritance you leave behind.

• Early Repayment Charges: If you want to clear the loan early (outside of the specific exemptions like death, long-term care, or downsizing), substantial penalties may apply in the first 10-15 years.

Customer Service and Reviews

As the lender behind the Royal London product, the administration is widely regarded as efficient and professional, with clear annual statements.

How to Apply

You cannot apply for a lifetime mortgage without professional financial advice. This is a regulatory requirement to ensure you understand the long-term impact on your estate and tax position.

1. Connect with an Adviser: Make an enquiry here and one of our equity release advisers will get you started.

2. Key Facts Illustration (KFI): The adviser will produce a personalised illustration showing the maximum you can borrow, the interest rate, and the costs.

3. Application: The adviser submits the application to Responsible Lending.

4. Valuation: A surveyor will value your home.

5. Legal Advice: You must appoint an independent solicitor to witness the deed and ensure you aren't under duress.