Equity Release News · Paying the Interest
Why Younger Equity Release Borrowers Are Choosing to Pay the Interest
By Graham Clelland, Director, My Later Life · Published 22 October 2026
Equity release used to be something people only thought about well into retirement. That's changing, and new figures from one of the UK's biggest lenders show just how much.
According to More2Life, almost two-thirds of its customers who choose to pay interest on their lifetime mortgage are under 70. In other words, people in their 50s and 60s are taking out equity release earlier, and keeping the cost firmly under control.
In this article I'll explain what the figures show, who More2Life are, and how much of a difference paying the interest can really make.
The key points at a glance
- 63.6% of More2Life's interest-paying customers were under 70 between January and September 2026.
- The biggest single age group was 60 to 64, making up 25.9% of those borrowers.
- Younger borrowers may hold their plan for 25 years or more, so how the interest builds up matters a great deal.
- Paying all the interest monthly keeps the balance level. Paying even part of it can more than halve what's owed after 25 years.
- Most plans let you stop paying if your income changes later, so you keep your flexibility.
Can you pay the interest on equity release?
Yes. With most modern lifetime mortgages you can choose to:
- Pay nothing and let the interest roll up
- Make voluntary repayments whenever it suits you
- Pay some or all of the interest each month
The more interest you pay, the less your balance grows, and the more of your home's value is left for you and your family.
So who are More2Life?
More2Life is a specialist UK equity release lender that focuses solely on lifetime mortgages. It was set up in 2008 as part of Key Group, operates from offices in Preston, and has grown into one of the largest lifetime mortgage lenders in the country. By its own estimate, it now arranges around a third of all UK lifetime mortgages.
It has a long record of new ideas. It was one of the first lenders to offer enhanced equity release, which gives better terms to people with certain health or lifestyle conditions. It also brought out one of the first plans that let customers pay interest while using a drawdown facility.
As a whole-of-market broker, More2Life is one of the many lenders we compare for our clients.
The data covers More2Life's Interest Reward customers between January and September 2026. These plans lower your interest rate when you make qualifying repayments, so the more you pay, the cheaper your borrowing becomes.
| Key finding | Figure |
|---|---|
| Interest Reward borrowers under 70 | 63.6% |
| Biggest single age group | 60 to 64 |
| Share of borrowers aged 60 to 64 | 25.9% |
| Period covered | January to September 2026 |
Put simply, the people most likely to pay the interest are the ones who are likely to have their plan the longest.
Why are younger borrowers paying the interest?
More2Life's chief executive, Dave Harris, says “the later life lending conversation is evolving.” Lifetime mortgages were once seen as a last resort late in retirement. Now, he explains, homeowners are speaking to advisers much earlier and planning ahead.
He points to two main reasons:
1. A longer timeframe
Someone who takes out a plan at 60 could have it for 25 or 30 years. Over that length of time, the way interest builds up makes a huge difference to what's left at the end.
2. Ongoing income
Many people in their late 50s and 60s are still working. That means they can put some of their earnings towards the interest, rather than letting it roll up.
More2Life also sees this as part of a wider shift, with advisers looking at a broader range of solutions for each client. That matches what I see every week. People don't want a one-size-fits-all plan. They want one that fits their income now and still gives them room to change course later.
How much difference does paying the interest make?
Here's a simple illustration. It shows roughly what a £50,000 lifetime mortgage at 6.3% could grow to over 25 years, depending on how much of the interest you pay.
| Approach | Monthly payment | Approximate balance after 25 years |
|---|---|---|
| Pay no interest (roll-up) | £0 | £230,000 |
| Pay half the interest | Around £130 | £109,000 |
| Pay all the interest | Around £260 | £50,000 |
Paying all the interest keeps the balance exactly where it started. That leaves far more of your home's value for you or your family.
Figures are illustrative only. They assume a fixed rate of 6.3% and do not include fees or any rate reductions. Your own figures will depend on your circumstances and the plan you choose.
To see how current lender rates compare, take a look at our equity release rates comparison.
Your three ways to handle the interest
1. Let all the interest roll up
No monthly payments at all. The balance compounds over time, so it grows faster the longer the plan runs.
2. Make voluntary repayments
Plans that meet Equity Release Council standards let you repay some of the balance each year without penalty (often up to 10%). You can stop whenever you like.
3. Pay the interest monthly
Some lenders offer interest-serviced lifetime mortgages, and some, like More2Life's Interest Reward range, reward regular payments with a lower rate. If your income covers it, the balance stays flat.
The big advantage over a standard mortgage is flexibility. If your income drops later, perhaps when you stop work or lose a partner, you can usually switch to letting the interest roll up instead. You won't fall into arrears.
Could paying the interest be right for you?
It's worth asking about an interest-paying plan if:
- You're in your 50s or 60s and still working, or have a steady pension income
- You want to protect as much of your home's value as possible for your family
- You want to release money now but keep your options open for later
It may be less suitable if your income is already stretched, or if the main reason you're releasing equity is to reduce your monthly outgoings.
Not sure if you qualify? Our eligibility guide covers the basics.
The calculator provides an indication only. It is not a personal recommendation or confirmation that a particular equity release product will be available to you.
Things to weigh up, plainly
- Starting younger means longer borrowing. If you stop paying the interest, it can compound for decades.
- You can usually borrow less at younger ages. Lenders release a smaller share of your home's value the younger you are.
- Means-tested benefits such as Pension Credit can be affected by the cash you release.
- Early repayment charges can apply if you pay the whole plan off early, outside the penalty-free allowances.
For a fuller rundown, see the pros and cons of equity release. If any terms are unfamiliar, our jargon guide explains them in plain English.
Questions to ask your My Later Life adviser
1. What will I owe over time?
Ask to see the balance after 10, 20 and 25 years, both with and without paying the interest.
2. Can I change or stop my payments?
Check exactly what happens if your income drops, and whether there's any penalty for stopping.
3. Will paying reduce my rate?
Some plans, like More2Life's Interest Reward range, lower your rate when you make regular payments. Others don't.
4. Is there a better alternative?
A retirement interest-only mortgage, downsizing or using savings may suit you better. A good adviser should compare them all with you. See how our process works step by step.
Paying interest on equity release: common questions
Can I pay the interest on a lifetime mortgage?
Yes. Most modern lifetime mortgages let you pay some or all of the interest each month, or make voluntary repayments. This stops the balance growing as quickly.
Can I stop paying the interest later?
On most plans, yes. If your income changes, you can usually switch to letting the interest roll up without falling into arrears. Check the terms of your specific plan with your adviser.
How much can paying the interest save?
It can be a lot. On a £50,000 loan at 6.3%, the balance could grow to around £230,000 after 25 years if no interest is paid. Paying all the interest keeps it at £50,000.
Do I need to be under 70 to pay the interest?
No. Anyone can choose to pay the interest if the plan allows it. Younger borrowers simply tend to benefit most because their plans may run for longer.
Who are More2Life?
More2Life is a UK equity release lender that specialises in lifetime mortgages. It was founded in 2008, is part of Key Group, and says it arranges around a third of all UK lifetime mortgages.
Is it still equity release if I pay the interest?
Yes. It's still a lifetime mortgage with the same protections, including the no negative equity guarantee and the right to live in your home for life.
More answers are on our equity release FAQ page and in our free equity release guide.
“More and more of the people I meet in their late fifties and sixties want to use their home's value without handing all the control to compound interest. Paying some or all of the interest lets them do exactly that, and they can still change their mind later if life changes.”
Graham Clelland, Director, My Later Life
A final word from me
These figures confirm what we've been seeing for a while. Equity release isn't just for people in their eighties any more, and it doesn't have to mean watching the debt snowball.
If you're thinking about it in your 50s or 60s, the key is choosing a plan that fits your income today and still gives you room to adapt. As a whole-of-market broker, we compare lenders including Aviva, Canada Life, Just, LV, More2Life, Pure, Livemore and Riverton to find the right fit.
If you'd like free, impartial advice, call us on 0207 100 4255 (Mon to Fri 9am to 8pm, Sat 9am to 4pm). There's no obligation.
Important information
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
My Later Life Planning is a trading style of My Group Inc Ltd, an Appointed Representative of The Right Mortgage Limited, authorised and regulated by the Financial Conduct Authority (FRN 976283). A fee may be charged for mortgage advice. This article is general information, not personal advice.
