Best Equity Release Companies in Oct 2021

Find Out the Leading Equity Release Providers in the UK [2021]

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9 Best Equity Release Companies in the UK in Oct 2021

We’ve done the research so that you don’t have to!

If you’re property rich, but cash is tight, equity release could be the answer you’ve been looking for.

However, with so many providers on the market, if you don’t have expert advice, you could end up using the wrong lender, joining a 3rd of the customers who regret their equity release decision.

To avoid this, using one of the top schemes in Oct 2021 is essential.

Luckily, we’re here to help you discover:

  • The best UK equity release companies in Oct 2021.
  • Who to turn to for a lifetime mortgage.
  • The companies that offer the best home reversion scheme options.

As experts in the field of equity release, our goal is to help you, UK citizens of all ages, to prepare for your financial future.

Therefore, our team of professionals has combed the market and compared plans by all regulated providers, as well as those that aren’t. Through our research, we’ve put together this up-to-date list.

Now, you must be wondering, who are the top equity release providers in Oct 2021? Let’s find out now!

8 Top Lifetime Mortgage Providers

Company Name Minimum Age Minimum Property Value Minimum Equity Offered
Aviva 55 £75,000 £15,000
Hodge Lifetime 55 £100,000 £15,000
Just 60 £70,000 £10,000
Legal & General 55 £100,000 £10,000
Liverpool Victoria 60 £70,000 £10,000
More2Life 60 £70,000 £10,000
Nationwide 55 £10,000
Stone Haven 55 £70,000 £10,000

Do You Want the Best Equity Release Deal?

Want to Get the Best Quote? » Compare Equity Release Quotes.

Want to Get the Best Deal? » Compare Equity Release Deals.

Want to Get the Best Interest Rate? » Find the Best Equity Release Interest Rate.

What Is Equity Release & How Does it Work?

An equity release plan enables homeowners over the age of 55 to unlock the value in their estate by converting it into a cash lump sum or regular income. 

These plans don’t require you to make any monthly repayments and allow you to continue owning and living in your home until you pass away, or move into permanent care. Only then is the plan customarily repaid from the sale of your residence.

Given how long plans run for, you need to make an informed decision on the company that will help you with the process. It’s important to ensure that your chosen company gives you the best equity release plan for your circumstances.

You can only achieve that through a thorough comparison of the plan providers across the market to find the most favourable rate.

Learn More: How Does Equity Release Work?

Why Choose Equity Release?

In today’s economic climate, needing additional retirement income is not uncommon. While equity release is a great option, it’s not ideal for everyone. Selling and downsizing to a smaller or cheaper property is often an easier solution.

However, many of us treasure our family homes, and change is sometimes scary. Growing old surrounded by beautiful memories can be incredibly special. In such cases, equity release could be an ideal option.

As with all financial products, it’s essential to be aware of all the advantages, and disadvantages of equity release, the costs involved, and how it will impact your inheritance. That way, you can unlock equity with total confidence.

How Did We Choose the Best Equity Release Companies?

With multiple equity release companies currently on the market, including banks providing such services, it can be challenging to select which lender will best provide you with the plan to suit your needs. Each equity release provider will offer different plans, deals, and services.

You might find that some providers will cater to different age ranges than the industry standards. For example, they could have a minimum age of 60 or 65.

In addition, interest rates and fees may also differ, while others may only give you the option to unlock a fixed amount of equity.

Therefore, the trick to finding the best deal for you is to compare all these details from a few providers. This way, you can make a sound decision based on tons of evidence.

So what did we find most important when reviewing the providers?

  • Low early repayment charges
  • No early repayment charges if your new property is worth less than your old one
  • Penalty-free 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 another property
  • Low admin fees for adding or removing someone to your loan

That said, here is a guide on the best equity release plan providers in Oct 2021.

Hopefully, you will find one that will cater to your needs.

How to Choose the Best Equity Release Plan?

You’ll need to look for the following:

  • Your lender MUST be a member of the Equity Release Council.
  • Your company should offer a ‘no negative equity guarantee’, which ensures that your family will never pay more for your loan than the sale price of your home, even if property prices plummet.
  • Inquire as to whether they will have application fees. These are also known as arrangement fees.
  • Look for a flexible product with no hidden exorbitant fees.

Best Equity Release Deals

Are you looking to compare equity release deals?

Unlocking equity is a huge decision and you’ll want to find the best equity release deals for Oct 2021.

The ideal way to do so is to look for a whole market financial adviser that specialises in equity release. They’ll analyze plans by all regulated lenders, finding the best equity release 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.

Top 9 Equity Release Providers in Oct 2021

#01. Age Partnership

Best for: Communication & knowledge

Age Partnership Equity Release was developed in 2004, and it offers a tailored range of equity release products. It has a 97% trust score in various independent review sites, and it has won several awards including ‘The Best Equity Release Advisor Customer Service Highly Commended Award’ in 2017.

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.

What Does It Offer?

Age Partnership Equity Release is an efficient equity release brokering company that compares equity release throughout the market as opposed to offering you a single lifetime mortgage product1, like most companies.

Due to Age Partnership’s prominent position in the equity release market, it has a preferential rates agreement with leading plan providers – in other words, it can offer rates that may not be directly accessible to you or through IFAs.

This means that by using its services, you’re eligible to:

  • Preferential low lifetime mortgage rates that can save you thousands of capital in terms of interest
  • Cash bonuses
  • Free estate valuations

Since it compares equity release products across the market, its services include, but are not limited to:

  • LV
  • Legal & General
  • Hodge Lifetime
  • Aviva
  • Just Retirement
  • Pure Retirement
  • More 2 Life

Age Partnership is SovereignBoss’ “accredited broker”, which means we’ve assessed them to be knowledgeable, impartial and customer-focused and our first choice.

Features & Qualification Considerations

  • Minimum Age Limit: 55 years
  • Maximum Age Limit: 95 years
  • Interest Rates Offered: Preferential Low Lifetime Mortgage Rates
  • Customer Review Ratings: A++
  • Special Features: No Negative Equity Guarantee 

If you need more information on Age Partnership, use our calculator and see how much you can release.

#02. Nationwide

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 the best equity release interest rates, incentives, and cash back options.

The FCA regulates Nationwide, including its equity release plans, and it is a certified member of the Equity Release Council2  . This means Nationwide has agreed to abide by the codes of its membership.

What Does It Offer?

The company offers a wide range of flexible lifetime mortgage options that pay out an initial lump sum of equity. However, you can also choose to have a cash reserve facility that provides you with easy access to your capital and does not affect your means-tested benefits.

This is a more cost-effective option since you only pay interest on the cash you withdraw and not any money in reserve. The minimum initial loan with this plan is £10,000, with a minimum of £5,000 in the cash reserve.

Nationwide also offers more favourable interest rates depending on your health records and lifestyle conditions.

Features & Qualification Considerations

  • Minimum Amount of Equity Offered: £10,000
  • Maximum Amount of Equity Offered: £460,000
  • Minimum Age Limit: 55 years
  • Maximum Age Limit: 85 years
  • Interest Rates Offered: Depends on how risky the loan is, but for the early repayment plan, it’s 6%
  • Customer Review Ratings: A+
  • Special Features: No Negative Equity Guarantee 
  • Inheritance Protection Guarantee
  • Voluntary Partial Repayment 

Best for: Inheritance protection guarantee

Legal & General (L&G) is one of the world’s largest equity release 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 ‘no negative equity guarantee.’ 

The FCA also regulates the company, including its services, and the company has won several awards.

What Plans Do They Offer?

It offers two varieties of the lifetime mortgage plan. They include the:

The Flexible Lifetime Mortgage offers you a chance to borrow money as either a single tax-free cash lump sum or in smaller amounts (drawdowns). 

The minimum you can borrow with this plan is £10,000, and the maximum will be dependent on your age and value of your estate. You can also opt to drawdown a minimum of £2,000 at any time with no fees.

You will only be charged the interest rate at the time of the withdrawal; not your original application. It also comes with a ‘no negative equity guarantee’ and you can choose the inheritance protection option at no extra cost. 

With this plan, you can be sure that your family will have something left after you die.

The Premier Flexible Lifetime Mortgage, on the other hand, works similarly to the standard flexible lifetime mortgage option, but it offers you a minimum of £250,000.

Legal & General Equity Release also offers other favourable plans, and you can access them on its website.

Features & Qualification Considerations

  • Minimum Amount of Equity Offered: Dependent on the plan, but it ranges from £10,000 to £250,000
  • Maximum Amount of Equity Offered: No limit specification
  • Minimum Age Limit: 55 years
  • Maximum Age Limit: 75 years
  • Property Minimum Value: £100,000 and £150,000 for ex-council property
  • Interest Rates Offered: Depends on how risky the loan is
  • Customer Review Ratings: A+
  • Location: Scotland, Wales, England 
  • Special Features: 
    • No Negative Equity Guarantee 
    • Inheritance Protection Guarantee (at no extra costs)

L&G also works with ‘The Retirement Lending Advisers’ to help you find the plan that best caters to your needs. It doesn’t charge for this service, but advice is only offered on L&G market products and not equity release schemes available with other companies.

If you need more information on L&G, use our calculator and see how much you can release.

#04. Aviva

Best for: Transparancy

Aviva equity release, one of the most established equity release plan providers in the UK, has been offering lifetime mortgage plans to more than 150,000 consumers since 2000.

The company has over 30 million consumers worldwide, and it provides a wide range of lifetime mortgage products.

It is regulated by the FCA, and it’s a certified member of the Equity Release Council.

Aviva has also won several awards in the equity release arena including the Best Equity Release Provider in 2016.

What Plans Do They Offer?

The company offers two lifetime mortgage plans, and subject to its terms and conditions, both options allow you to remain in your residence until you (and your partner if you take a joint lifetime mortgage scheme) pass on or move into permanent care.

They include:

The Lifetime Lump Sum Max Plan enables you to unlock a minimum lump-sum payment of £15,000 or more with the option of borrowing a more substantial amount at a later date, subject to your age and property value.

The Aviva Flexible Plan, on the other hand, offers you either a single lump sum or a drawdown option (you can get more information on this by checking out the ‘Types of Equity Release Schemes’ guide). It also offers you a minimum initial loan of £10,000, with a minimum of £5,000 in the cash reserve for future use.

Aviva Equity Release also provides you with favourable interest rates that are dependent on your health and lifestyle conditions.

Features & Considerations

  • Minimum Amount of Equity Offered: £15,000
  • Maximum Amount of Equity Offered: No limit specification
  • Minimum Age Limit: 55 years
  • Maximum Age Limit: 80 years
  • Property Minimum Value: £75,000 (and it should not be unoccupied for more than six months)
  • Property Condition: Freehold (Aviva can accept if 160 years are remaining on the lease)
  • Interest Rates Offered: Depends on how risky the loan is
  • Customer Review Ratings: A+ BBB
  • Special Features: 
    • No Negative Equity Guarantee 
    • Inheritance Protection Guarantee
    • Voluntary Partial Repayment

The Aviva Lifetime Mortgage Plans are designed to last for life, but they also offer you the option of having ‘early repayment plans.’

If you need more information on Aviva, use our calculator and see how much you can release.

#05. Liverpool Victoria (LV=)

Best for: Interest

Liverpool Victoria, popularly known as LV=, is a leading financial company in the UK with over one million clients who have unlocked the value of their homes through equity release schemes. 

It’s one of the few equity release companies 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 Equity Release Council. This means it has a ‘no negative equity guarantee’ and complies with the rest of the Equity Release Council’s guidelines and principles. 

The company has also won several awards including the 5-star awards for Equity Release Services for its Flexible Lifetime Mortgage.

What Plans Do They Offer?

Liverpool Victoria offers two great lifetime mortgage plans. They include the:

The Lifetime Mortgage Lump Sum + Plan allows homeowners to release cash amounts from 25% of their estate’s value if they are 60 years old, and up to 55% for those aged between 90 to 95. 

It also allows you to borrow a minimum single lump sum payment of £10,000, meaning that the fees and interest rates are lower compared to LV’s flexible lifetime mortgage. Any future borrowing can be available depending on your circumstances and the terms and conditions of the equity release plan at the time.

True to its name, the Flexible Lifetime Mortgage offers you more flexibility when compared to the Lump Sum Plus Plan. You can decide to unlock the value of your home either through a lump sum or a drawdown plan. 

The amount of cash you withdraw with this plan ranges from 20% of the value of your residence for 60-year-olds and 50% for those aged between 90 and 95. The minimum amount you can unlock is about £10,000. The maximum can be three times your original loan or if lower, the highest amount will be against the value of your residence. 

It has a minimum withdrawal limit of £2,000, and you can unlock the maximum loan available to you for a period of 15 years. However, you can only make one withdrawal each year, and your provider will charge interest at the prevailing rates at that time and not as per the initial loan agreement.

Features & Qualifications Considerations

  • Minimum Amount of Equity Offered: £10,000
  • Maximum Amount of Equity Offered: No limit specification
  • Minimum Age Limit: 60 years
  • Maximum Age Limit: 95 years
  • Property Minimum Value: £70,000 
  • Property Condition: Freehold, bungalow, or flat. If it’s leasehold, it may be accepted. However, the lease should have between 70 to 90 years remaining dependent on your age
  • Location: England, Scotland or Wales including the Isle of Wight and Anglesey
  • Building Materials: In excellent condition, well maintained and designed of conventional bricks and mortar (other building materials may be considered)
  • Interest Rates Offered: Depends on how risky the loan is
  • Customer Review Ratings: A+
  • Special Features: No Negative Equity Guarantee 

You should also note that the LV equity release interest is compounded annually and not monthly, like with other plan providers. It can make a massive difference over ten years.

If you need more information on LV, please use our calculator and see how much you can release.

#06. Just

Best for: Website information

Formerly referred to as Just Retirement Equity Release and established from a merger of Just Retirement and Partnership Assurance, the company offers three equity release plans and provides its customers with flexible terms that allow you to borrow more based on your health and lifestyle choices.

The FCA regulates it, and it’s a certified member of the Equity Release Council.

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.

What Plans Do They Offer?

It has three equity release options, and they include:

The Just Drawdown Lifetime Mortgage Plan is accessible to consumers above 60 years, and it enables you to release a minimum of £10,000 and a maximum of £600,000 if you live in England and £250,000 if you live in Wales, Scotland or Northern Ireland, depending on your age and estate value. 

You can opt to release the cash in a single lump sum or smaller amounts. Therefore, you will only pay interest on the initial amount you unlocked, based on the prevailing rates at the time of every withdrawal.

The cash reserve accessible will be limited to the lower amount of either three times the start-up loan or the maximum amount you can borrow based on your age and the value of your residence.

The Lump Sum Lite Lifetime Mortgage Plan is for those aged 60 and above and whose property is worth at least £70,000 and located in Scotland, Wales or England.  

It also serves those that need to unlock a single lump sum payment without having to withdraw any additional sums in the future. The amount of money you release is higher than that of the drawdown lifetime plan, but their interest rates are off-the-roof too. If you need to borrow more, you’ll have to wait till six months are over, but it all depends on your eligibility. 

The amount you release is dependent on your age and the value of the estate with a minimum amount of £10,000 and a maximum of £600,000 in England and £250,000 in Scotland and Wales.

The Lump Sum Plus Lifetime Plan is available to those aged 60 and above and with an estate value of at least £70,000 in Wales, England, and Scotland. 

It provides you with the choice to maximise the lending potential against your property. The standard loan to value is typically higher than that of the Drawdown Lifetime mortgage, but it also comes with a higher interest rate. Moreover, the Just Underwriting team also considers your health and lifestyle, thus offering you the option of borrowing a more considerable amount. 

Features & Qualification Considerations

  • Minimum Amount of Equity Offered: £10,000
  • Maximum Amount of Equity Offered: £600,000 if you live in England and £250,000 Wales, Scotland or Northern Ireland
  • Minimum Age Limit: 60 years
  • Maximum Age Limit: 90 years
  • Property Minimum Value: £70,000 
  • Location: England, Scotland or Wales for all plans and Northern Ireland for the drawdown lifetime mortgage scheme
  • Interest Rates Offered: Depends on how risky the loan is
  • Customer Review Ratings: A+
  • Special Features: No Negative Equity Guarantee 

If you need more information on Just, use our calculator and see how much you can release.

#07. More 2 Life

Best for: Variety

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 equity release firms in the UK. 

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.

What Plans Do They Offer?

The Lump Sum + Plan enables homeowners who are aged 60 years and above to borrow money that ranges from 20% to 50% of your estate’s value. 

It also allows you to acquire a minimum single lump sum payment of £10,000, and any future borrowing can be available depending on your circumstances and the terms and conditions of the equity release plan at the time.

Features & Qualification Considerations

  • Minimum Amount of Equity Offered: £10,000
  • Maximum Amount of Equity Offered: No Limit specification
  • Minimum Age Limit: 60 years
  • Maximum Age Limit: 90 years
  • Property Minimum Value: £70,000 
  • Location: England, Scotland or Wales 
  • Interest Rates Offered: Depends on how risky the loan is
  • Customer Review Ratings: A+
  • Special Features: No Negative Equity Guarantee  

If you need more information on More2Life, use our calculator and see how much you can release.

#08. Hodge Lifetime

Best for: High maximum loan limits

Incorporated in 1965 and an exclusively owned subsidiary of Julian Hodge Bank Limited, Hodge Lifetime equity release offers you several lifetime mortgage plans.

It’s a founder member of the Equity Release trade body and is one of the most established equity release lenders, whose primary focus is committed to the retirement market.

The FCA regulates the company’s services, and it’s a member of the Equity Release Council.

It has also won several awards inclusive of the ‘Best Lender for Older Borrowers.’

What Plans Do They Offer?

Hodge offers four types of lifetime mortgage plans:

  • Flexible Lifetime Mortgage 
  • Lump Sum Lifetime Mortgage
  • Lifetime Mortgage 
  • Indexed Lifetime Mortgage 

The Flexible Lifetime Mortgage Plan gives you the option of taking out an initial lump sum, but you can then withdraw further lump sums in the future. 

The minimum cash you can release is £1,000 per transaction, and the maximum loan available is £500,000, but it’s dependent on your age and property value. You can also repay up to 10% of the initial lump sum plus 10% of any further withdrawals on an annual basis without being charged. You also have the choice to pay back the loan as a result of selling your property after five years.

The Lump Sum Plan allows you to release a single lump sum payment. It comes with an option to pay back 10% of the value of the original loan each year and the chance to repay after five years due to selling or relocating to another estate, without incurring early repayment charges.

The Lifetime Mortgage is accessible to those aged 55 instead of 60 and gives you a higher loan value, of up to £1,000,000. You can opt to release it in a single lump sum, and you can still choose to repay up to 10% of the first loan annually. You can repay the full credit on a repayment charge, at a fixed scale and it’s payable for up to ten years.

The Indexed Lifetime Mortgage Plan is also accessible to 55 up to 85-year-olds with a maximum loan limit of £1,000,000.

The only difference with this plan is that its interest is variable and you can only apply for it once a year to reflect annual movement in the All Items Consumer Prices Index yearly rate. The scheme comes with an ‘Interest Rate Guarantee’ that consists of a ceiling and floor rate, meaning you will never pay more or less interest than the two thresholds that will be set out in the original mortgage contract.

Features & Qualifications Considerations

  • Minimum Amount of Equity Offered: £20,000 or £15,000
  • Maximum Amount of Equity Offered: No Limit specification
  • Minimum Age Limit: 55 or 60 years
  • Maximum Age Limit: 85 years
  • Property Minimum Value: £100,000 
  • Property Condition:  Freehold, bungalow, flat, or maisonette. If you have a lease, there should be a minimum of between 90 to 99 years left on the contract
  • Location: Scotland, Wales, and England
  • Interest Rates Offered: Dependent on how risky the loan is 
  • Customer Review Ratings: A+BBB
  • Special Features: 
    • No Negative Equity Guarantee 
    • Interest Rate Guarantee

If you need more information on Hodge Lifetime, use our calculator and see how much you can release.

#09. Stone Haven

Best for: Nation-wide service

Stone Haven equity release provider has been in the frontline, since 2006, for innovative equity release schemes. 

It provides its consumers with equity release plans they can trust and depend on to make their retirement comfortable. It offers several lifetime mortgage plans.

The FCA also regulates the company’s services, and it’s a certified member of the Equity Release Council.

What Plans Do They Offer?

Stone Haven offers three types of lifetime mortgage plans:

  • Lump-Sum Lite Lifetime Mortgage
  • Voluntary Select Lite Plan
  • Interest Select Lite Plan

The Lump-Sum Lite Lifetime Mortgage is one of the best schemes of Stone Haven. 

It provides you with a market leading interest rate of 6.13%. You don’t have to make any month-to-month repayments in the life of the plan. It’s especially perfect for those looking to leave some inheritance to their children, or those who cannot afford to contribute towards the interest charged by Stone Haven. For homeowners aged 55 and above, it allows you to release a minimum of 11% of your estate value.

The Voluntary Select Lite Plan enables you to make 10% voluntary repayments each year with no penalty. You can start making payments anytime from inception, and you will also have the chance to choose whether to make ad-hoc payments. The minimum you can withdraw with this plan is £20,000, and there is currently no maximum limit. 

The Interest Select Lite Plan is Stone Haven’s lifetime mortgage jewel and most popular option. 

It provides you with the flexibility you need and offers financial control. There are no income checks, and it’s often seen as a self-certification mortgage, perfect for those who may have had adverse credit in the past. The amount you can release is dependent on the age of the youngest applicant and your estate value. It charges an interest rate of 5.94%, and it allows you to maintain a level mortgage balance throughout and therefore secure the final inheritance when the providers eventually sell your property. 

Features & Qualifications Considerations

  • Minimum Amount of Equity Offered: £10,000 
  • Maximum Amount of Equity Offered: No Limit specification
  • Minimum Age Limit: 55 years
  • Maximum Age Limit: 85 years
  • Property Minimum Value: £70,000 
  • Interest Rates Offered: Monthly and dependent on how risky the loan is
  • Customer Review Ratings: A+
  • Special Features: No Negative Equity Guarantee 

 If you need more information on Stonehaven, use our calculator and see how much you can release.

A-Z of the Top Equity Release Brokers & Lenders

A

Age Partnership – a member of the Equity Release Council, Age Partnership is a guarantee of quality.

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.

B

Barclays – a British multinational investment bank and financial services company, Barclays is 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.

Bridgewater – an American investment management firm founded by Ray Dalio in 1975. They serve institutional clients including pension funds, endowments, foundations, foreign. governments, and central banks.

C

Canada Life – is a Canadian company founded in 1847 that offers life, health, and disability insurance for groups and individuals.

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 experts.

D

Daily Mail – among their many other specialities, the Daily Mail is dedicated in spreading awareness about equity release.

E

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 leading 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.

G

Go Compare – one of the more versatile insurance companies out there, they deal on anything ranging from equity release to pet insurance.

Guardian – a British daily newspaper that often writes about equity release.

H

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 plan in 1965.

HSBC – a bank and financial services holding company known all over the world, HSBC is synonym of trust.

J

Just – their product range includes savings, investments, credit, mortgages, pensions, plans for later life care funding.

K

Key – founded in 1998, they started to focus on all equity release advice services in 2001.

adviser 4 2

L

L&G – commonly known as Legal & General, they are a multinational financial services company headquartered in London.

LiveMore Capital – they enable over 55s to live life to the fullest with interest-only mortgages. They can take all of their sources of income into account so they can still lend to those that the other providers can’t help.

Liverpool Victoria – one of the United Kingdom’s largest insurance companies with over five million customers.

Lloyds – traditionally considered one of the “Big Four” clearing banks, they have branches all across England and Wales.

M

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. He specialises on Equity release advice.

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 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.

N

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. Since 2000, it has been part of The Royal Bank of Scotland Group.

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.

O

One Family – a mutual society and as such has no shareholders, and is instead owned by its 2.6 million members.

P

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 – independent and locally owned, this brokerage company takes pride on being a dedicated and educated group of real estate professionals.

R

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 lump sum and instead of making interest repayments.

Right – established in 2010 and is now one of the leading independent equity release specialists.

S

Saga – their Equity Release Advice Service is provided by HUB Financial Solutions Limited. You must be aged 55 or over with a UK home worth at least £70,000.

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 plans in the form of lifetime mortgages. These plans allow customers to unlock a lump sum from the value of their properties, with no requirement to repay the interest on the mortgage until the customer passes away or enters into long-term care or sheltered accommodation. 

SHIP – stands for Safe Home Income Plans and is good news for consumers looking into Equity Release. It’s a code of conduct launched in 1991 the main aim of which is to protect consumers when taking out an equity Release deal.

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 lump sum amount 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

T

Telegraph – they write and inform people about the benefits of equity release.

W

Which – they specialise in spreading awareness on the legal implications of lifetime mortgages and reversion plans.

Y

Yorkshire Bank – a trustworthy bank that was founded in 1859 as the West Riding Penny Savings Bank and adopted its present name in 1959.

A-Z of the Leading Building Societies Offering Equity Release Mortgages

B

Bath Building Society – founded in 1904 as a Friendly Society, the Society now focuses on savings and mortgages. The mortgage business specialises in offering niche residential mortgage products to meet the individual demands of customers – such as retirement interest-only (RIO) 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.

Its savings and mortgages services haven’t changed fundamentally since 1907 and the society now offers a range of discounted rate retirement interest-only (RIO) mortgages.

L

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.

M

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.

As part of this range, the Society offers both fixed and discounted rate retirement mortgages.

N

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).

P

Penrith Building Society – offers a RIO mortgage to borrowers over the age of 55 and will lend up to 50% of the property’s value (LTV).

S

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.

This can be used for any purpose and also people looking to raise capital to buy their rented property from the local authority or housing association. In addition, Scottish Building Society now have a Retirement Interest-Only Mortgage (RIO) which will lend on a lifetime mortgage basis

T

The Family Building Society – offers a range of fixed rate and discounted rate retirement interest-only (RIO) mortgage for new customers.

Their range is only available to the over 65s and the society will lend up to 50% of the value of the property (the LTV). The minimum loan size is £45,000 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’.

V

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 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.’ They have access to review the entire market.

A restricted adviser is usually linked to an equity release firm. Here are the benefits and disadvantages of this option:

  • 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.

What Is a Typical Interest Rate With Equity Release?

Equity Release interest rates do vary considerably. You can expect to pay under 5%, or even less in Oct 2021. However, you can find plans with interest rates as low as 2.3%

However, sometimes the best equity release deals have less flexibility. Therefore, you must look at your options as a whole, before making a final decision. It’s best not to get caught by flashy specials.

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 home 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).

Got Questions? Check These First

How Do I Know if an Equity Release Lender Is Legitimate?

How Much Interest Do Different Companies Ask You to Pay Back on Equity Release?

Can You Have Separate Equity Release Plans With Different Providers on the Same House?

Which Is the Best Equity Release Company?

In Summary

Equity release is one of the most important financial decisions you will ever make in your life. So, it would be best if you took your time when choosing a plan provider that will cater to all your needs. You should do your due diligence and consult several providers before making an informed decision on the company that will make your retirement the best times of your life.

Therefore, if you need to know more about equity release in Oct 2021, check out the plan that best suits your situation or have a look at several reviews on equity release schemes, be sure to get your free equity release quote 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.

Contributors: Nicola Date, Katherine Read
Edited by Rachel Wait
Reviewed by Francis Hui

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Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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