If you are in the market for a later-life mortgage, you may be wondering who the best lifetime mortgage providers are. 

With 15 lifetime mortgage providers registered as members of the Equity Release Council, it can be daunting deciding which to go with, nevertheless which plan to choose.¹ 

This article, built on careful research and industry knowledge, aims to demystify the process and arm you with the information you need. 

We explain what a lifetime mortgage is, how to find the right provider, and even how to navigate more complex situations. Therefore...

What Is a Lifetime Mortgage?

A lifetime mortgage is a long-term loan secured against a borrower's property and is repaid from the sale of the property after the borrower passes away or moves into long-term care. 

Unlike a standard mortgage, there are typically no monthly repayments and the interest is compounded or 'accrued' over time.

What Do You Need to Know About Lifetime Mortgage Providers?

Lifetime mortgage providers offer the loan and hold the borrower’s property title in their hands until the loan is paid back.

Providers are authorised and regulated in the UK by the Financial Conduct Authority (FCA) and supervised by the Equity Release Council (ERC), ensuring they adhere to fair lending practices. 

These providers include banks, building societies, and specialist lenders. 

It is important to understand that whilst all providers offer similar basic services, their terms, conditions, and interest rates can vary significantly.

As such, the selection process should involve consulting a qualified equity release advisor or broker to determine the best fit for your needs and goals. 

How to Find the Best Lifetime Mortgage Provider

Finding the best provider will largely depend on your personal circumstances, including your age, property value, health, and future plans. 

Look for a provider who offers a competitive interest rate, favourable terms, and high-quality customer service. Also, look at flexibility and standing with the FCA and ERC.

Consider using a financial adviser or broker with expertise in lifetime mortgages to help you navigate the process.

Who Are the Top 12 Lifetime Mortgage Providers in the UK for 2025?

The top lifetime mortgage providers in the UK, in no particular order, are:

Aviva

• Aviva equity release, a notable UK insurer, provides services to over 18mln customers.
• It offers flexible withdrawal options and partial payment plans.
• It offers features such as downsizing protection and inheritance guarantees.
• It has received a 4.2 / 5 rating out of nearly 29,000 reviews on Trustpilot.²
• It is a member of the Equity Release Council (ERC) and authorised and regulated in the UK by the Financial Conduct Authority (FCA).

Pure Retirement

• Pure Retirement has been recognised with several awards in recent years for it's services.
• It offers downsizing protection and porting options.
• Currently, it has a Trustpilot rating of 4.4 / 5 out of fewer than 200 reviews.³
• It is a member of the ERC and is authorised and regulated in the UK by the FCA.
• It has a limited lifetime mortgage range.

Canada Life

• Canada Life services nearly 4mln clients.
• It's lifetime mortgage offerings allow you to repay up to 10% every year.
• It's offerings also include the options of downsizing protection and inheritance guarantees.
• Trustpilot ratings are quite negative with a 1.7 / 5 rating on fewer than 100 reviews.⁴
• It is authorised and regulated in the UK by the FCA and is a member of the ERC.

More2Life

• More2Life offers a relatively swift turnaround time of typically eight days for applications.⁵
• It has a wide range of products to suit various needs.
• It offers downsizing protection and inheritance guarantees.
• Early redemption fees may be waived depending on the circumstances surrounding the early repayment.
• It has a very positive rating on Trustpilot of 4.5 / 5 on over 1,000 reviews.⁶
• It is authorised and regulated in the UK by the FCA and is a member of the ERC.

LV=

• LV= provides both lump sum and drawdown mortgages.
• If you choose to make an early repayment after ten years, there will be no charge applied.
• You can also make payments of up to 10% without incurring any early repayment penalty.
• It offers products that have received industry awards.
• Customer reviews on Trustpilot of 4.6 / 5 on nearly 64,000 reviews.⁷
• It is authorised and regulated in the UK by the FCA and is a member of the ERC.

Hodge

• Hodge Bank is a lender that specialises in providing services to the over 55 market.
• It offered the Hodge Early Repayment Promise⁸ on some of it's later-life mortgage products wherein it pledges to waive any early repayment charges in certain situations.
• Over 1,500 customers have rated it 4.7 / 5 on Trustpilot.⁹
• It services over 85,000 customers in the UK.
• It is authorised and regulated in the UK by the FCA.
• Hodge has decided to move away from equity release and is transferring its plans to other lenders. ¹⁰

 Legal & General

• Legal & General provides flexible and optional payment lifetime mortgages.
• It offers a further advance option should your drawdown facility be finished and you have held your lifetime mortgage for over one year (provided there is equity available in your home).¹¹
• It offers downsizing protection, porting, and inheritance guarantee.
• You can make optional partial repayments on your loan up to a certain amount without incurring early repayment charges.
• Sitting with a 2.7 / 5 rating on Trustpilot out of nearly 12,000 reviews.¹²
• It is authorised and regulated in the UK by the FCA.

One Family

• One Family is a mutual organisation, in that, it is owned by it's members and run for the benefit of its members.
• It was recognised as the top life insurance provider for people in their 50s by Defacto for two consecutive years.
• It is not offering lifetime mortgage services to new customers but is still taking care of existing customers.
• It is authorised and regulated in the UK by the FCA.

Nationwide Building Society

• Nationwide Building Society, a mutual organisation, comprises around 250 building societies and serves over 16mln members.
• It no longer offers lifetime or retirement mortgages to new clients but continues to service its existing clientele.
• It was awarded the Remortgage Buyer’s Choice at the Moneyfacts Consumer Awards in 2020 and 2021.¹³
• It is authorised and regulated in the UK by the FCA.

Just

• Just offers a medically upgraded lifetime mortgage for those with underlying health conditions.
• It also offers the possibility of obtaining a lower interest rate if your property has a legitimate Energy Performance Certificate (EPC) rating of B or above.¹⁴
• It has approximately 650,000 customers.
• You can port your mortgage if the new home fits its criteria.
• It has a Trustpilot rating of 4.7 / 5 out of over 200 reviews.
• It is authorised and regulated in the UK by the FCA.

Responsible Lending

• Responsible Lending holds the exclusive right to provide the Royal London Equity Release products.¹⁵
• It offers a no-negative equity guarantee, and voluntary interest repayments with no early repayment charge.
• You can get a lump sum or drawdown lifetime mortgage, as well as access to Premier products should your property qualify.
• It is authorised and regulated in the UK by the FCA.

Scottish Widows

• Scottish Widows operates as a subsidiary of Lloyds Banking Group.
• The lifetime mortgage offerings include drawdown and lump sum options.
• It offers features such as a fixed interest rate for life, a bereavement exception, portability, and an inheritance guarantee.
• It also has a no negative equity guarantee.
• Its Trustpilot rating is 1.2 / 5 out of over 800 reviews.¹⁶
• It is authorised and regulated in the UK by the FCA.

The features mentioned and the amounts raised, are subject to the lender’s criteria, terms, and conditions. These may take into account age, health, and lifestyle factors to provide an enhanced amount.

Lifetime Mortgage Drawbacks

Lifetime mortgages do come with some drawbacks that must be considered before deciding on this form of borrowing. 

These drawbacks include: 

• Interest Compounds: In lifetime mortgages, interest compounds over time, escalating the debt rapidly. You could end up owing much more than the initial loan.
• Inheritance Impact: Lifetime mortgages are usually repaid from your property's sale when you pass away or move into long-term care, potentially diminishing your heirs' inheritance.
• State Benefits Affected: Releasing home equity may impact your eligibility for means-tested state benefits, such as Pension Credit and Council Tax Support.
• Risk of Repossession: With lifetime mortgages requiring regular payments, like interest-only plans, failing to meet payments could lead to property repossession.

Most lifetime mortgage plans involve rolled-up interest, where no regular payments are required during your lifetime. 

The loan and interest are repaid when the homeowner passes away or moves into long-term care. 

Understanding your lifetime mortgage's terms and consulting with a financial advisor is essential. 

How Did We Choose and Review the Top Lifetime Mortgage Providers? 

Our review of top lifetime mortgage providers involved:

• Interest Rates: We analysed each provider's interest rates, considering both initial rates and if they are fixed or variable.
• Flexibility: We assessed the range of mortgage types offered and any unique features like voluntary repayments or inheritance guarantees.
• Early Repayment Charges: We reviewed policies on early repayments, crucial for those who may want to pay off their mortgage early.
• Customer Service: We evaluated each provider's customer service reputation and their ability to effectively resolve issues.
• Consumer Reviews: We consulted trusted review platforms to gather customer feedback on each provider.
• Additional Features or Options: We looked at any extra features or options, like no-negative-equity guarantees or overpayment allowances. 

This thorough, consumer-centric approach ensured our reviews are comprehensive and relevant.

SovereignBoss is an unrelated third-party information website. The opinions in this article are our own and do not necessarily reflect the views or opinions of the providers mentioned.

The Role of Banks and Building Societies in Offering Lifetime Mortgages

Some banks and building societies offer lifetime mortgages but with different emphases. 

Building societies, being member-owned, focus on community engagement and personalised customer service. Their longstanding involvement in this area makes them a popular choice.

Banks, due to their larger scale operations, can offer competitive rates and a variety of mortgage options. 

Their commercial, shareholder-focused structure allows them to cater to a wider demographic.

Both types of institutions contribute significantly to the market by fostering competition and innovation in their products and services. 

Hence, considering options from both can ensure the best deal that suits your financial needs.

Niche and Specialist Lifetime Mortgage Providers

Within the realm of lifetime mortgages, some providers focus on specific groups or unique circumstances. 

These include lenders specialising in complex cases, perhaps involving unique property types or complicated financial situations.

It is worth noting that they may have limited product options in comparison to other, more mainstream providers.

Additionally, there are providers targeting individuals with health issues. 

Since certain health conditions could affect life expectancy and subsequently the mortgage terms, these providers consider these factors when structuring their products.

Finally, we have providers who cater to non-standard properties. 

These can range from heritage-listed buildings to high-value estates or properties with unusual construction. 

These niche providers, with their specific expertise, extend the advantages of a lifetime mortgage to a wider range of individuals. 

However, it is important to note that eligibility for a lifetime mortgage will vary based on individual circumstances.

Interest-Only Lifetime Mortgage Providers

Certain providers offer an 'interest-only' option for lifetime mortgages, enabling homeowners to regulate their loan amount through consistent interest payments. 

Providers usually demand proof of income to validate borrowers' ability to maintain these payments, thus providing a controlled way to utilise property's value. 

However, it is important to consider potential risks. 

If you are unable to keep up with interest payments due to unexpected financial hardship or income loss, the amount of the loan could increase significantly. 

This could potentially lead to more debt and, in severe cases, the risk of repossession of the property. 

Hence, it is crucial to consider financial stability and potential changes in circumstances before opting for this type of mortgage.

Good news:

As of March 2022, all lifetime mortgages offered by Equity Release Council members now offer borrowers the guaranteed right to make penalty-free, voluntary repayments in line with the lender’s terms and conditions.¹⁷ 

Features to Look for in a Lifetime Mortgage Provider

When considering a lifetime mortgage, certain key features warrant careful consideration in selecting the right provider. 

These features could include: 

• Transparency in terms and conditions
• Competitive interest rates tailored for your age group
• Flexible repayment options
• Reputable track record 

Additionally, a provider's affiliation with regulatory bodies, like the Equity Release Council, can provide added confidence in their commitment to ethical practices and consumer protection. 

Prioritise a provider that aligns with your financial goals and offers the comprehensive features needed to ensure a secure and informed journey toward unlocking the value of your home.

Consider seeking independent professional advice for a thorough understanding.

Common Questions

In Conclusion

Navigating the world of lifetime mortgages can seem daunting, but armed with the right information, you can make informed decisions that suit your circumstances. 

Whether you are considering the broad services of banks, the community-oriented approach of building societies, or the specific solutions of niche providers, there are various options available. 

Always remember to evaluate interest rates, equity release flexibility, repayment options, and customer service quality to find a deal that works for you. 

In this dynamic and complex market, consulting an expert equity release advisor or broker can help you find the best lifetime mortgage provider for your needs and goals.