Equity Release Companies to Avoid

Red Flag Warning: Equity Release Companies To Avoid

To Choose the Best Equity Release Scheme, You Should Know Which Equity Release Companies to Avoid. Otherwise, You Could Find Yourself in Trouble. We’re Going to Shed a Light On Which Equity Release Companies Get the Go-Ahead & Which Ones Don’t.
Equity Release Companies to Avoid
Best and Worst Equity Release Companies

The Best & Worst Equity Release Companies of 2021

Best in the UK

There are many well-known equity release providers in the UK. More 2 Life, LV, and Aviva are great companies to choose from.

Some companies also worth mentioning include:

  • Hodge, which is the longest-established provider in the UK
  • HSBC, a bank and financial services company
  • Just, a savings, credit, pension and mortgage provider
  • L&G, a multinational financial service provider

However, it’s also good to know which companies to avoid.

Worst in the UK

Any equity release company that doesn’t have a ‘no negative equity guarantee’, that isn’t a member of the ERC, or charge high interest rates should be avoided.

Do your research! To contrast the best and worst companies, let’s look at our top 5.

Top 5 Companies In This Market

Top 5 Companies In This Market

It’s vital for your future finances that you know everything about the companies that provide equity release services. If you choose one of the companies we suggest, you won’t have anything to worry about. Our top 5 providers are reliable, experienced, and will take care of your needs.

Aviva

Aviva is a household name in the UK. They’re known mainly for their pension plans and insurance products. To add to that, they’re one of the oldest financial service providers. If you’re considering them, it’s good to know that their equity release products are award-winning and that over 200 000 people have made use of them. Since 1998, Aviva has helped people release a total of £7 billion from their homes.

Aviva’s primary services include:

  • Inheritance guarantee services
  • Voluntary partial repayments
  • Enhanced borrowing (if you have certain medical conditions)
  • Downsizing protection services
  • Relaxed lending services

Aviva has a lot to offer, and they’ll be an excellent choice.

Hodge Lifetime

In 1965, Hodge Lifetime launched its first equity release plan, making them the longest established provider in the UK. Julian Hodge Bank Limited is the product provider2. As one of the oldest providers, they’ve built up an excellent range of equity release products and an established customer base. They’ve created a superb retirement mortgage range to go with their traditional lifetime mortgage plans.

Hodge Lifetime provides an interest-only mortgage plan requiring monthly interest payments. The rest of the loan must be paid back when you pass away or move into long term care.

Just Retirement

Extremely popular in the post-retirement marketplace, they’re known for their excellent range of annuities. They’ve also started lending cash through equity release plans.

Let me tell you:

Just Retirement has a unique equity release model, which has proved to be one of its core strengths. Not only do they lend money directly to borrowers, but they also fund other company’s equity release plans. Their equity release plans include a wide range of traditional lifetime mortgages, including drawdown lifetime mortgages, interest-only lifetime mortgages, lump-sum equity plans, and enhanced equity release plans.

LV (Liverpool Victoria)

LV, or Liverpool Victoria, is known as a mutual society and was established in 1843. Their target market is working-class people to whom they offer a range of equity release plans such as drawdown lifetime mortgages and lump-sum schemes. With this versatile provider, you can get equity release on your primary residence, your secondary residence, and your holiday home.

Legal & General

They’re also a household name and joined the lifetime mortgage industry in 2015. They have two lifetime mortgage options: the L&G Income Lifetime Mortgage and the L&G Flexible Lifetime Mortgage.

Let’s take a closer look:

L&G Flexible Lifetime Mortgages

You get colour-coded based on the amount of money you can borrow according to your property’s value (LTV). For example, “Flexible Pink.” The amount of interest you’ll pay will depend on the LTV.

All these are drawdown plans that L&G offer. With these, you’ll be able to borrow a minimum amount of £10,000. The “Flexible” mortgages range allows voluntary repayments which give you up to 10% of what you borrowed annually, but you won’t be penalised.

L&G Income Lifetime Mortgage

Also colour-coded, the same rule applying to the Flexible Lifetime Mortgage applies here. You’ll pay more interest when the LTV is high. These plans give you a fixed monthly payment for 10-25 years. This amount starts from £200.

Want to Get the Best Rate? » Get the Top Equity Release Quote Here.

Common Questions

What Equity Release Company is the Best?

Is the 'No Negative Equity Guarantee' In an Equity Release Company Needed?

What Equity Release Companies Should You Avoid?

Does the ERC Protect Me from Rotten Companies?

Conclusion

In the end, equity release offers many advantages, but it can also have its fair share of downfalls, depending on your circumstances. You need to do the research, and you need to speak to professionals who can analyse your situation and advise you appropriately.

It’s essential to choose a provider that offers the most competitive rates, flexible products that can be tailored to your needs, and ongoing customer service. With the guidelines above, you’ll be sure to make the right choice.

What People Say

Top Equity Release Articles

Is Equity Release a Good Idea

Is Equity Release a Good Idea?

You’ll probably agree when I say… If you’re a homeowner, you’re a lucky retiree nowadays. Why? Well, because property prices have increased dramatically, and being a homeowner gives you excellent

Equity Release Costs Explained

Equity Release Costs Explained

Working Out The Exact Cost Of Equity Release Just as a regular mortgage has costs related to initiation and maintenance, so does equity release. If you’re considering all your available

Is Equity Release the Next Best Thing

Enter The World Of Equity Release

If you’ve recently retired or are aiming to do so in the next few years, you may be short on the cash you need to make your dream retirement a reality.

Equity Release Companies to Avoid

Equity Release Companies to Avoid

The Best & Worst Equity Release Companies of 2021 Best in the UK There are many well-known equity release providers in the UK. More 2 Life, LV, and Aviva are

Here Are the Top Alternatives To Equity Release

11 Top Alternatives To Equity Release

Let’s look at some alternatives to releasing equity: Have You Thought About Selling Your Assets? If you have other assets, you could always sell some of them or all of

Got a Question You Want Quickly Answered?

* Get an equity release expert to give you a quick call.

Your Journey to Financial Success Starts Here

Request a Call Back Below

We'll get an expert to call you back shortly.

Equity Release Call Back
Please check your details are 100% correct

We Hate Spam as Much as You. 100% Secure.