Compare Skipton Building Society Equity Release Quotes Against The Market

Skipton Building Society, the UK’s fourth-largest building society, is widely respected for its member-owned status and "common sense" approach to mortgages. In the later-life market, Skipton focuses on providing flexible alternatives to traditional equity release.

While they do not offer "no-payment" roll-up lifetime mortgages directly, they are a market leader in Retirement Interest-Only (RIO) mortgages and lending for those transitioning into retirement.

If you are wondering whether Skipton is a better alternative to traditional equity release providers for you, get in touch below and one of our advisers will review this for you.

Who is Skipton Building Society?

Founded in 1853 and based in North Yorkshire, Skipton is a mutual organization, meaning it is owned by its members rather than shareholders. This structure allows them to prioritise customer service and long-term value. They are particularly well-known for their manual underwriting, where human experts - rather than just automated systems - review each application, making them a top choice for retirees with complex or non-standard income streams.

What is Skipton Equity Release?

It is important to distinguish between "equity release" and "later-life lending." Skipton does not offer traditional roll-up lifetime mortgages. Instead, they help homeowners aged 55 and over through two primary routes:

• Retirement Interest-Only (RIO) Mortgages: This is Skipton’s specialist product for retirees. You borrow a lump sum and pay only the interest each month. The loan balance remains the same for the life of the mortgage and is repaid only when you pass away, move into care, or sell the home.

• Standard Interest-Only (Into Retirement): For those still working but planning for the future, Skipton allows mortgages to run into retirement (up to age 85 or older in some cases), provided projected pension income can cover the payments.

• Referral Service: For customers who specifically require a "no-payment" lifetime mortgage, Skipton often points members toward independent specialists or partners to ensure they receive "whole-of-market" advice.

Key Features of Skipton Later Life Lending

Skipton’s products are defined by their flexibility and modern "Income Booster" features:

• Manual Underwriting: They excel at looking at the "big picture." They will consider income from diverse sources, including SIPPs, drawdown pensions, and even some types of self-employment late into life.

• Income Booster (Joint Borrower Sole Proprietor): This allows up to four people to be on the mortgage. For example, children can add their income to help their parents pass affordability checks for a RIO mortgage, even if the children don't own the property.

• Flexible Age Limits: Skipton is very generous with age, often allowing RIO mortgages for applicants well into their 80s, as long as affordability is proven.

• No "Interest Snowball": Because you pay the interest monthly on a RIO mortgage, your debt never grows. This guarantees that a larger portion of your home's equity is preserved for your heirs.

• Overpayment Allowance: Most plans allow you to pay off up to 10% of the capital each year without penalty, allowing you to reduce the actual debt over time.

Skipton Interest Rates and Fees

Because Skipton requires monthly interest payments, their rates are typically significantly lower than traditional "no-payment" equity release.

Their RIO and interest-only rates generally depend on the fixed-rate term (usually 2, 3, or 5 years) and your loan-to-value (LTV). Speak to one of our advisers for a full breakdown of their latest rates and how they compare to traditional equity release products elsewhere.

Typical Fees

• Product Fees: Often range from £0 to £1,495, with "fee-free" options available at slightly higher rates.

• Valuation: Many later-life products include a free basic valuation.

• Cashback: Skipton frequently offers cashback incentives (around £250–£500) for remortgage customers to help with legal costs.

Eligibility Criteria

To qualify for a Skipton RIO or later-life mortgage, you generally need:

• Age: Minimum age is typically 55 or 60 for RIO products.

• Income: You must pass an affordability test. If you are within 10 years of retirement, Skipton will look at the lower of your current income or projected retirement income.

• LTV: Maximum Loan-to-Value is usually capped at 60% to 75%.

• Property Value: Your home must be your main residence and typically valued at £100,000 or more.

Pros and Cons of Skipton Later Life Lending

Pros:

• Manual Underwriting: Great for "outside the box" income or property situations.

• Lower Cost: Much cheaper than traditional roll-up equity release.

• Protects Inheritance: The debt remains level because interest is paid monthly.

• Income Booster: Unique ability to involve family members in the affordability calculation.

Cons:

• Monthly Commitment: You must have the disposable income to make interest payments every month.

• No "No-Payment" Plan: If you want a plan where you pay nothing, Skipton won't provide it directly.

• Strict Affordability: Unlike lifetime mortgages, you must prove you can afford the loan from your pension.

• Risk to Home: Your property is at risk of repossession if you fail to keep up with the monthly payments.

How to apply for Skipton’s later life products

The best route is through an independent mortgage adviser who specialises in later life borrowers, as you will need to compare Skipton’s offering with traditional equity release products that are available elsewhere.

We have mortgage advisers and equity release specialists on our team and they can help you find the best deal for your needs, whether that’s a Skipton RIO mortgage or a lifetime mortgage from another provider.

Get started here to begin a free, no-obligation chat with an adviser who specialises in helping customers secure the finance they need in later life.