We’ve found that Age Partnership is the best equity release lender because they offer great service & are extremely knowledgeable advisors. What about your other options?
Luckily, we’re here to help you discover:
- Which lenders are top in the UK in Jan 2022?
- Which company has the best equity release deal?
- The most comprehensive equity release providers list.
- The typical interest rates on a drawdown or lump sum equity release loan.
- The pros and cons when you choose equity release.
- The importance of finding a plan featuring a no negative equity guarantee.
Therefore, our team of professionals has combed the market and compared over 690 plans. Through our research, we’ve put together this up-to-date list.
What’s Equity Release?
Equity release refers to a group of finance products that allow you to gain access to the equity (cash) in your house if you’re over 55. You can unlock the money in a tax-free cash lump sum, drawdown facility, or a combination of both. No monthly repayments are required. The loan and compound interest are settled using the cash from your property’s sale, which will take place when you die or enter care long-term.
Here’s More: What’s an Equity Release Mortgage?
What are the Typical Interest Rates on Equity Release Loans?
The typical interest rate on equity release/a lifetime mortgage is around 3%. The interest will compound if you select for a plan with no monthly repayments.
Discover the factors that impact interest rates & what you can expect from the process in our article on the ‘Interest Rates on Equity Release Schemes‘.
|Company Name||Min. Age||Min. Property Value||Min. Equity Offered||Interest Rate|
|Legal & General (L&G)||55||£100,000||£10,000||2.97%|
|Liverpool Victoria (LVE)||60||£70,000||£10,000||3.09%|
Top 7 Equity Release Providers in Jan 2022
#01. Age Partnership
Best for: Communication & knowledge
Age Partnership Equity Release was developed in 2004, and it offers a tailored range of equity release and lifetime mortgage products. It has a 97% trust score in various independent review sites, and it has won several awards.
The Financial Conduct Authority (FCA) regulates the company, including its equity release plans, and the company follows the statements and principles stipulated by the Equity Release Council.
Best for: Repayment plans
Nationwide is a new independent entrant to the equity release market (in November 2017). It’s the UK’s highest-rated building society, with about 15 million members, and is currently one of the largest lifetime mortgage providers.
It offers a whole range of products to help ensure you receive low interest rates, incentives, cashback options on your lifetime mortgage, the option of a tax-free cash lump sum, or a drawdown facility, and plans with the option of monthly repayments.
The FCA regulates Nationwide, and it is a certified member of the ERC2. This means Nationwide has agreed to abide by the codes of its membership.
#03. Legal & General
Best for: Inheritance protection guarantee
Legal & General (L&G) is one of the world’s largest equity release and lifetime mortgage plan providers and one of the UK’s leading pension fund asset managers.
As a certified member of the equity release council, it abides by their guidelines and codes, and it endorses the essential ‘no negative equity guarantee.’ The FCA also regulates the company, including its services, and the company has won several awards.
Best for: Older borrowers
Aviva equity release, one of the most established lifetime mortgage providers in the UK, has been offering lifetime mortgage plans to more than 150,000 consumers since 2000.
It is regulated by the FCA, and it’s a certified member of the ERC & has won several awards in the equity release plan and lifetime mortgage arena including the leading provider in 2016.
#05. Liverpool Victoria (LV=)
Best for: Low equity release interest rates
Liverpool Victoria, popularly known as LV=, is a leading financial company in the UK with over one million clients who have unlocked the property value through equity release and lifetime mortgage schemes, gaining access to a tax-free cash lump sum or drawdown facility.
It’s one of the few lenders to offer holiday home or second home lifetime mortgage plans in the UK.
LV= has been in the equity release game since 2002, and it’s authorised by the FCA and a certified member of the ERC. The company has also won several awards including the 5-star awards for Equity Release Services for its Flexible Lifetime Mortgage.
Best for: Customer experience
Formerly referred to as Just Retirement Equity Release and established from a merger of Just Retirement and Partnership Assurance, the company offers 3 lifetime mortgage plans and provides its customers with flexible terms that allow you to borrow more based on your health and lifestyle choices, whether with a lump sum or drawdown equity release.
It has also won several awards including the ‘5-star in the ‘Life and Pensions’ Category by the Financial Adviser Service Awards for the last twelve years, and the ‘5-star for the ‘Mortgages’ Category, nine years in a row.
#07. More 2 Life
Best for: Flexibility & choices
More 2 Life equity release was established in 2008 and is known as the most prominent innovator in the lifetime mortgage market and is among the largest UK-based equity release companies.
The FCA fully authorises it, and it only deals with fully qualified, independent advisers. As a board member of the Equity Release Council, it adheres to the body’s standards and principles that ensure the fair treatment of customers unlocking equity through a lump sum or drawdown.
Interesting read: Interest-Only Lifetime Mortgage Providers
How Did We Choose the Best Equity Release Companies?
We chose the top lifetime mortgage and equity release plan providers by looking at the equity release interest rates they offered, the services they provided as well as various reviews.
So what did we find most important when reviewing the providers?
- Low early repayment charges or even no early repayment charge.
- No early repayment charges if your new property is worth less than your old one.
- No negative equity guarantee.
- Penalty-free monthly repayments if you’re in a couple and one person dies or goes into care.
- Flexibility, meaning you can take the loan with you to a new property.
- Low admin fees for adding or removing someone to your loan.
Wondering what’s the amount of equity that’s tied into your home? Try our FREE equity release calculator RIGHT NOW!
How to Choose the Best Equity Release Plan?
To choose the leading equity release plan or lifetime mortgage provider make sure you find a plan from a provider that is a member of the ERC. Also look out for:
- Equity Release Council Member – your lender for lifetime mortgages and home reversion schemes MUST be a member of the ERC.
- No Negative Equity Guarantee – which means that your heirs wil not have to pay more for your lifetime mortgage loan than the amount your home sells for, even if there’s a reduction in property prices.
- Application/Arrangement Fees – enquire as to whether they will have application fees.
- Flexibility – look for a flexible product with no hidden exorbitant fees.
Take note: If you unlock equity with a one-off lump sum, you’ll be charged interest. However, with a drawdown equity release mortgage, you’re only charged compound interest on the cash you withdraw. You can also opt for an initial lump sum, with the balance going into a drawdown facility.
How to Find the Best Equity Release Deals?
To find the best deal on an equity release mortgage, look for a whole of market financial adviser whose specialty is lifetime mortgages and home reversion schemes. They’ll analyse the best equity release deals by all regulated lifetime mortgage and home reversion scheme lenders, finding the perfect deals at the time.
As the market grows, the industry is becoming more competitive, meaning that lenders are looking for ways to create better deals so that they can stand out from the crowd.
You might want to consider looking for a plan with the option of monthly repayments.
Want to Get the Best Interest Rate? » Find the Top Rates on Equity Release.
Equity Release Product Providers List
- Age Partnership – an Equity Release Council member, Age Partnership is a guarantee of quality for a drawdown or lump sum lifetime mortgage.
- Ashfords – specialises on advising clients on the legal implications of lifetime mortgages and reversion plans.
- Aviva – the largest general insurer in the UK and a leading life and pensions provider. Also holds a membership as part of the Equity Release Council.
- Barclays – a British multinational investment bank and known all over the world as one of the best in the business.
- BBC – their main expertise is lifetime mortgages and reversion plans, including lifetime interest only mortgages, with lump sum and drawdown features.
- Bridgewater – an American investment management firm founded by Ray Dalio in 1975.
- Canada Life – is a Canadian company founded in 1847 that offers life, health, and disability insurance for groups and individuals. They are a proud Equity Release Council member, offering lump sum and drawdown options.
- Club – a private capital initiative, structured as a Club Deal offering its shareholders the opportunity to invest directly in mid-cap companies.
- Crown – one of their many businesses is the acquisition, development and sale of real estate properties, but they’re also equity release scheme experts.
- Daily Mail – among their many other specialities, the Daily Mail is dedicated in spreading awareness about these cash release companies.
- Equity Release Club – a private capital initiative, they offer more flexibility in terms of investment policy, governance and exit strategy compared to a traditional PE fund.
- Equity Release Supermarket – founded by Mark Gregory in 2008, in a few years has grown to become one of the top equity release advisory services.
- Equity Release Wise – they focus on the management of Private Equity closed-end funds investing in small and medium sized companies.
- Go Compare – one of the more versatile insurance companies out there, they deal on anything ranging from an equity release plan to pet insurance.
- Guardian – a British daily newspaper that often writes about equity release.
- Halifax – an established private equity firm that invests alongside owners and managers of industry-leading growing and profitable companies.
- Hodge – the longest established equity release provider in the UK, they launched the very first equity release product in 1965.
- HSBC – a bank and holding company known all over the world, HSBC is synonym of trust.
- Just – their product range includes savings, investments, credit, mortgages, pensions, plans for later life care funding.
- Key – founded in 1998, they started to focus on all equity release plan advice services in 2001. They offer a range of products with lump sum and drawdown facilities.
- L&G – commonly known as Legal & General, they are a multinational financial company headquartered in London.
- LiveMore Capital – they enable over 55s to live life to the fullest with interest-only mortgages.
- Liverpool Victoria – one of the United Kingdom’s largest insurance companies with over five million customers. They also offer lump sum lifetime mortgage and drawdown equity release.
- Lloyds – traditionally considered one of the “Big Four” clearing banks, they have branches all across England and Wales.
- Marsden – a member of the Building Societies Association, a trade organisation of building societies in the United Kingdom.
- Martin Lewis – is an English journalist and television presenter. He founded the website MoneySavingExpert.com.
- Money Saving Expert – was founded by Martin Steven Lewis, the website specialises on Equity release advice.
- Moneysupermarket – is a British price comparison website-based business specialising in financial services.
- More 2 Life – since their foundation, they’ve been focused solely on lump sum and drawdown equity release, supporting advisers and putting client’s needs first.
- Mortgage Express – has access to a vast range of home loan products that help make the choices that are important to your individual needs.
- Nationwide – the seventh largest cooperative financial institution and the largest building society in the world with over 15 million members.
- Natwest – established in 1968 by the merger of National Provincial Bank and Westminster Bank.
- New Life – has won several awards and continues to provide successful equity release products to retirees.
- Northern Rock – originally a building society, it demutualised and became Northern Rock bank in 1997.
- Norwich Union – established in 1797, it was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index.
- One Family – a mutual society and as such has no shareholders, and is instead owned by its 2.6 million members.
- Papilio – a lifetime mortgage servicing company and specialist purpose vehicle who work on behalf of JP Morgan.
- Prudential – member of the American Fortune Global 500 and Fortune 500 company whose subsidiaries provide insurance, investment management, and other financial products.
- Pure Retirement – independent and locally owned, pure retirement brokerage company takes pride on being a dedicated and educated group of real estate professionals. Pure Retirement are also equity release experts, bringing you a range of pure retirement equity release plans.
- RBS – one of the subsidiaries of The Royal Bank of Scotland Group plc, together with NatWest and Ulster Bank.
- Responsible Lending – they offer lifetime mortgages that helps you plan retirements using property as an income source that you hadn’t previously thought of.
- Retirement Advantage – their product range is available to consumers aged between 60 to 90-years-old and offers a tax-free, one-off cash lump sum and instead of making interest repayments.
- Right – established in 2010 and is now one of the leading independent equity release specialists.
- Saga – their Equity Release Advice Service is provided by HUB Financial Solutions Limited.
- Santander – they offer a five-year deal with Legal and General Home Finance to offer the business’s lifetime mortgages to its own existing customers struggling to pay off their interest-only mortgage.
- Scottish Widows – offers equity release in the form of lifetime mortgages.
- SHIP – stands for Safe Home Income Plans and is good news for consumers looking into Equity Release.
- Solar – gives you the opportunity to release the power of those payments in one go by selling access to your Feed in Tariff and getting a cash lump sum in return.
- Step Change – formerly the Consumer Credit Counselling Service, they are a debt charity operating across the United Kingdom.
- Stone Haven – a dedicated website offering free equity release information specifically highlighting Retirement Advantage products.
- Sun Life – one of the largest life insurance companies in the world, and also one of the oldest, with a history spanning back to 1865
- Telegraph – they write and inform people about the benefits of equity release.
- Which – they specialise in spreading awareness on the legal implications of lifetime mortgages and reversion plans.
- Yorkshire Bank – a trustworthy bank that was founded in 1859 as the West Riding Penny Savings Bank and adopted its present name in 1959.
Building Societies Offering Lifetime Mortgages or Retirement Interest-Only Mortgages
- Bath Building Society – founded in 1904 as a Friendly Society, the Society now focuses on savings and mortgages.
- Buckinghamshire Building Society – as a mutual society, it has no shareholders to pay and so the emphasis is on providing a traditional service to all its members.
- Leeds Building Society – They offer a range of 2-year fixed-rate RIO mortgages, with or without product fees and one offers a cashback of up to £500.
- Mansfield Building Society – as well as being a secure haven for savings, Mansfield Building Society offer a clear and transparent range of mortgage solutions to help people fulfil their individual housing needs.
- Newbury Building Society – offers a single, 5-year discounted rate RIO mortgage for borrowers over 60 which offers a maximum lending of 50% of the value of the property (the LTV).
- Penrith Building Society – offers a RIO mortgage to borrowers aged 55 or more and will lend up to 50% of the property’s value (LTV).
- Scottish Building Society – offers a range of mortgages to residents of Scotland, one of them being this residential mortgage that can help retirees borrow up to the age of 85.
- The Family Building Society – offers a range of fixed rate and discounted rate retirement interest-only (RIO) mortgage for new customers.
- Tipton & Coseley Building Society – offers a number of fixed and discounted rate RIO mortgages with terms of 3 and 5 years and whole of term discounted rate mortgage within the Society’s ‘later life lending range’.
- Vernon Building Society – offers a range of RIO mortgages with 3,5-year fixed, discounted rate and discounted rate offset terms. For borrowers with an LPA in place, the Society offers a discount to the rates available.
Do You Have Questions? Check These First
How Do I Know if an Equity Release Lender Is Legitimate?
The way to know if an equity release lender is legitimate is to ensure they hold a membership with the Equity Release Council. In addition, the lender must be transparent about the terms and conditions of the plans they offer.
Can You Have Separate Equity Release Plans With Different Providers on the Same House?
You can’t have separate equity release plans with different providers on the same house. You can have one plan per house. If you want to go with an alternative plan from a different lender, you’ll need to make a switch.
Do I Need to Get Financial Advice?
You are required to get professional financial advice when taking out an equity release product.
However, you do have 2 options to select from:
- A restricted adviser: They are only able to advise you on a limited number of products.
- An independent adviser: Also known as ‘whole market advisers.’ Their access to review plans spans the entire market.
A restricted adviser is usually linked to an equity release firm.
The benefits and disadvantages of using a restricted adviser:
- What’s good is that you won’t need to pay additional fees for your financial advice.
- On the other hand, you could miss out on the best equity release deals.
On the other hand, an independent financial adviser can give you a more rounded view of the entire market.
Is There a Better Alternative to Equity Release?
There are alternatives to equity release that you must first consider, as opting to release equity from your estate is a massive decision. Therefore, educate yourself on all your options to raise the money you’ll need to get through your retirement.
These alternatives include:
- Downsizing to a smaller or cheaper property.
- Extending the terms of your current mortgage.
- Renting out the spare rooms in your house.
- Selecting a retirement interest-only mortgage (RIO).
Who are the Best Equity Release Advisers?
We’ve found that Age Partnership is amongst the best equity release advisers.
Who Has the Top Rated Equity Release Products?
We’ve found that More2Life has the best rated equity release products, due to the lower early repayment charges & flexibility they offer.
The Capital Choice line of equity release products have dropping early-repayment charges of:
- 5% in the first 5 years
- 3% from year 6 onwards
- No early repayment charge after 10 years
Equity release plans that come with greater flexibility also tend to be more expensive.
How Do Equity Release Fees Work?
Equity release plans can be complex and come in lots of different forms, with different costs. These include:
- Arrangement fees
- Early repayment charges
- Redemption fee
- Fee for adding someone to the loan or removing them from it
- Valuation fee
Equity release is one of the most important financial decisions you will ever make in your life. So, whether it’s a lifetime mortgage or rather a home reversion, an initial lump sum, a drawdown, or both, it would be best if you took your time when choosing a plan provider that will cater to all your requirements.
Remember to consider all details when planning to release equity. For example, do you want a plan with the option of monthly repayments?
Therefore, if you need to know more about equity release deals in Jan 2022, check out the plan that best suits your situation or have a look at several reviews on equity release schemes, be sure to discover how much equity you can release with our equity release calculator and chat with an expert for free.
Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.
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