Compare Virgin Money Equity Release Quotes Against The Market

Virgin Money is a prominent high-street bank known for its customer-centric approach and "Brighter Money" branding. In the later-life lending market, Virgin Money focuses on flexibility and choice. Rather than offering a single specialised "equity release" loan, they provide a range of solutions including Retirement Interest-Only (RIO) mortgages and a strategic partnership with Legal & General for traditional lifetime mortgages.

Crucial 2026 Update: Virgin Money’s business is scheduled to officially become part of Nationwide Building Society on April 2, 2026. While current products remain active, new and existing customers may see products transition toward Nationwide’s later-life range later this year.

If you’re wondering whether Virgin Money or L&G are the right option for your later life finance, get in touch below and one of our advisers will review this for you.

Who is Virgin Money?

Virgin Money UK (which includes the former Northern Rock and Clydesdale/Yorkshire Bank brands) has repositioned itself as a major challenger to the traditional "Big Four" banks. In the retirement sector, they are recognised for their "common sense" underwriting and their ability to bridge the gap between standard residential mortgages and specialised equity release.

What is Virgin Money Equity Release?

Virgin Money offers two primary paths for homeowners over 55 to unlock property wealth:

• Retirement Interest-Only (RIO) Mortgages: This is Virgin Money’s flagship later-life product. You borrow a lump sum and pay only the interest each month. This ensures the loan balance never grows, protecting the remaining equity for your heirs. The loan is typically repaid when you die or move into care.

• Lifetime Mortgages (via Legal & General): If you prefer a plan with no mandatory monthly payments, Virgin Money refers customers to their partner, Legal & General Home Finance. This allows you to stay with a brand you trust while accessing specialised "roll-up" interest products.

Key Features of Virgin Money Later Life Lending

Virgin Money’s products are designed with the flexibility needed for modern retirement:

• Affordability with Manual Underwriting: They excel at looking at "actual" retirement income, including SIPPs, state pensions, and investment income, to help you pass affordability for RIO mortgages.

• Optional Interest Payments: Through their L&G partnership, they offer "Optional Payment" lifetime mortgages, allowing you to pay some, all, or none of the interest as your budget changes.

• No Maximum Age (for RIO): While standard mortgages have strict end dates, Virgin Money's RIO products are designed to last for the rest of your life.

• Overpayment Allowance: Most products allow you to pay off up to 10% of the loan amount each year without an Early Repayment Charge (ERC), giving you control over the debt.

• Cashback Incentives: Many Virgin Money later-life products include cashback (often £300–£500) to help cover legal or setup costs.

Virgin Money Interest Rates

Because Virgin Money prioritises the RIO model (where interest is paid monthly), their rates are often significantly lower than those of standard "roll-up" equity release.

Rates on L&G’s lifetime mortgages are generally higher than Virgin RIO deals, with the exact rate the customers secures generally dependent on the LTV and length of the fixed term they choose.

Speak to one of our advisers for a full breakdown of Virgin’s later life rates and how they compare to traditional equity release mortgages across the market.

Eligibility Criteria

To qualify for a Virgin Money later-life product, you generally need:

• Age: You must be at least 55 years old (though some standard mortgages into retirement can start earlier).

• Property Value: Your home must be your main residence and valued at £70,000 or more.

• Equity: For RIO mortgages, the maximum LTV is typically capped at 50% to 60%.

• Income: For RIO products, you must provide proof of sustainable retirement income to cover monthly interest payments.

Pros and Cons of Virgin Money Later Life Lending

Pros:

• Lower Interest Costs: RIO products are much cheaper than "roll-up" interest plans.

• Maintains Inheritance: Because the debt doesn't grow, the home's value is preserved for your family.

• Brand Security: Backed by a major bank (and soon Nationwide).

• Flexible Repayments: Great for those who want to "overpay" when they have spare cash.

Cons:

• Monthly Commitment: RIO mortgages require you to make payments every month; failure to do so puts your home at risk.

• Affordability Checks: Unlike standard equity release, you must "pass" an income assessment.

• Indirect Lifetime Mortgages: You have to deal with Legal & General for "no-payment" plans.

How to Apply

1. Initial Consultation: You can book an appointment with one of our independent advisers by making an enquiry here.

2. Affordability and suitability Check: You will need to provide evidence of your pension income and any other retirement funds so your adviser can review whether Virgin or another provider is the best fit for you

3. Specialist Referral: If a Virgin Money isn't right for you, we will facilitate a referral to an alternative lender

4. Completion: Once a lender and deal is chosen, the provider coordinates the valuation and legal checks, with funds typically released in 8-12 weeks.