Equity Release Companies

The Best Equity Release Lenders in Jan 2022

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

When Releasing Equity, You'll Want to Go With the Best Provider. We've Gathered Intel on the Best Equity Release Companies Available in Jan 2022

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The Best Equity Release Companies of Jan 2022

Not all equity release companies are created equally! Some stand out from the crowd.

If you’re looking to release equity in 2021, using a top scheme provider is crucial.

If not, you might end up receiving much less but paying significantly more. Every year, £1 billion goes to mortgage fraud, and if you’re not careful, you could be the next victim.

We’ll help you determine:

  • How to know if an plan provider is top-notch.
  • The best lifetime mortgage schemes operating in the UK.
  • Who to turn to for a home reversion scheme.

After studying over 220 plans, looking at who’s regulated, and analysing what the top plans have in common, we’ve compiled this list of the best of 2021. Check it out!

whats equity release

What’s Equity Release?

Equity release plans are a type of financial product that allows older homeowners to release equity tied into their homes. Equity release providers will give you the option to unlock the cash in a lump sum, a drawdown facility, a combination of both, or through a monthly salary. The 2 main types of equity release are a lifetime mortgage and a home reversion scheme.

Discover more: What Is Equity Release?

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How Does Equity Release Work?

Equity release schemes work by your home being collateral against your loan. Equity release providers will offer cash without any repayments being expected during the course of your life. Instead, the loan, plus compound interest1 is only repaid, usually from the sale of your home, when you die or enter long-term care.

Pension Abroad Pros and Cons

Equity Release Types

As mentioned above there are 2 equity release options available to you, a lifetime mortgage and a home reversion scheme. Let’s take a look at each:

Lifetime Mortgages

Lifetime mortgages are the most popular plans on the equity release market. These equity release mortgages allow you to unlock cash, while still retaining 100% ownership of the estate.

With a lifetime mortgage, you have the option to pay back the monthly interest and up to 10% of the loan anually, or you can allow it to compound and be repaid when you die or go to long-term care.

Full article: What’s a Lifetime Mortgage?

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Home Reversions

Home reversion schemes work by you selling part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living in the property rent-free until you die, but you have to agree to maintain and insure it.

You’ll need to seek financial advice with a lifetime mortgage and a home reversion scheme.

More information: What’s a Home Reversion Scheme?

Mortgages

How Do I Find the Best Equity Release Deals?

To find the best deal on equity release, you must seek professional equity release advice. Look for a whole market financial adviser that specialises in equity release. They’ll analyse plans by all regulated2 lenders, finding the best deals available at the time, and what best suits your and your family’s needs.

Interesting read: Equity Release Companies to avoid in Jan 2022

how did we choose the best equity release companies

How Did We Choose the Top Equity Release Companies?

We chose the best equity release companies by analysing all equity release plans by regulated providers. We looked at the equity release products they offer and their level of flexibility.

So, what do we consider the most essential aspects in finding the best equity release deal?

  • Minimal early repayment charges.
  • No early repayment charges if you move into a lower-value property.
  • Penalty-free repayments if you live with your partner and one of you passes away or goes into care.
  • Ease of transferring the loan to another property.
  • Option to add or remove someone from your loan without a high fee.
  • Fantastic specials or free features.
  • A balance between low interest rates and excellent features.

Hopefully, one of these will cater to your needs. Try our FREE equity release calculator to determine how much money is tied into your estate right here!

Are You Entitled To State Benefits

Are All Equity Release Companies Members of the Equity Release Council?

No, not all equity release companies are members of the Equity Release Council. If you’re looking to release tax-free cash, never select a lender that isn’t a member of the Council. The Equity Release Council3 is a trade body that was established in 1991 to oversee the equity release industry. Their primary goal is to protect the consumer and ensure that the industry is corruption-free.

Full article: What is the Equity Release Council?

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Which Is the Best Equity Release Company?

According to our detailed analysis, More2Life is currently the top equity release company in the industry. Beyond their excellent service, the main reason for this is that if you select the company for an equity release mortgage, its fixed early repayment charges reduce with time. This means that the longer you have a plan with them, the less you will pay on your early repayment charge if you decide to end it early.

Considering a cash lump sum through a More2Life equity release product? Contact a financial adviser who can guide you through the process.

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The 8 Top Equity Release Plan Providers in Jan 2022

While all ERC members are worth your consideration, there are 8 providers that currently offer the best equity release plans on the market.

Here they are!

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More2Life

As one of the largest equity release firms in the UK, More2Life is all about innovation. The company was established in 2008 and continues to grow. They’re known for their low early repayment fees.

More2life offers 5 plan types. This wide variety is perfect for catering to your individual needs.

Learn more: More2Life Equity Release

What does 2017 hold in store for UK property investors?

Aviva Lifetime Mortgage

As one of the UK’s leading plan providers, Aviva has had more than 250,000 equity release customers since 2020. This equates to over £8 billion in equity.

Aviva has won multiple awards, including Best Equity Release Lender at 2020 What Mortgage Awards!

Learn more: Aviva Equity Release

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Liverpool Victoria (LV=)

With more than 1 million equity release clients, Liverpool Victoria (LV) is one of the leading financial companies in the UK.

LV=, as you might know it, is a rare company that offers holiday home and second home lifetime mortgage plans. This is generally not seen in the UK.

Offering schemes since 2002, the company has won several awards. A recent accolade is a 5-star award for its Flexible Lifetime Mortgage.

Learn more: Live More Equity Release

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Legal & General

Legal & General is one of the UK’s leading pension fund asset managers and equity release scheme providers.

It has won numerous awards, including Later Life Lender of the Year at the 2021 Mortgage Awards.

 Legal & General gives you direct assistance with its whole-of-market advisers. These ‘Retirement Lending Advisers’ come at no additional cost and can provide you with guidance on the entire market.

Learn more: Legal & General Equity Release

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One Family

Born through a merger, One Family was founded in 2015. It’s one of the largest mutual organisations in the UK.

The company has a fixed advice fee of £950, and its whole-of-market advisers are available to help you find the best equity release plan for you and your family.

One Family’s schemes come with fixed and variable interest rates. You can select from 9 different plan options.

Learn more: One Family Equity Release

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Just.

Just Retirement and Partnership Assurance merged to form the financial solutions company Just.

The company was commended as one of the best service providers at the 2020 Investment Life and Pension Moneyfacts Awards.

Learn More: Just Equity Release

Living Abroad When you Retire

Nationwide Building Society

Nationwide is a relatively new player in the Equity Release market (November 2017), with 15 million members. It’s one of the country’s largest non-Lifetime Mortgage providers. You must be at least 55 to release equity with a Nationwide Lifetime Mortgage.

Learn more: Nationwide Equity Release

How Does 60 Lifetime Lease Work

Bridgewater Equity Release

In 1998, the company Bridgewater Equity Release was established as a specialist equity release provider. It has won several accolades for its service since 2006, when it was chosen Best Home Reversion Provider for 9 years in a row.

You must be at least 65 to receive a Bridgewater Equity Release Lifetime Mortgage and your property must be valued at least £120,000. At least 25% of the home or £25,000, whichever is lower, must be sold before you may release cash with a Bridgewater Equity Release Lifetime Mortgage.

Equity Release Pitfalls

Retirement Advantage

Lifetime Mortgages are available from Retirement Advantage, including fixed-term, interest-only and constant monthly payment options.

You must be 55 to 90 and reside in Great Britain to release equity through Retirement Advantage, and the home must be worth at least £100,000.

equity release pros cons

What are the Pros & Cons of Equity Release?

The biggest pro of equity release is that you have the opportunity to unlock tax-free cash. The biggest con of equity release is that the interest can compound quickly.

Here’s more details:

Retirement

Equity Release Pros

It’s rapidly growing in popularity due to the number of benefits that it provides.

  • Tax-free cash – Any money released with an equity release plan is tax-free and can be used for anything you want.
  • No monthly repayments – No monthly repayments are required throughout the full term of the loan.
  • You can stay in your home – you could be able to release the money that you need and remain living in the property. 
  • Fixed interest rates – The interest rate on most lifetime mortgage plans are fixed throughout the entire term of the loan.
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Equity Release Cons

  • Lower property equity – it will reduce the cash you have available in your property.
  • Lower means tested benefits – You could be entitled to fewer means-tested benefits if you take out an equity release loan.
  • Lower inheritance – you receive less for your house than you would if you sold it on the open market.

More Advantages & Disadvantages: What the Pros & Cons of Equity Release in Jan 2022 & Is it a Good Idea?

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Common Questions

What Is the Maximum Loan to Value for Equity Release?

What are the Typical Interest Rates on an Equity Release Loan?

How Much Does Equity Release Cost?

Are Equity Release Schemes Risky?

What are the Alternatives to Equity Release?

In Conclusion

Releasing equity from your home is a major decision, and with so many top-notch lenders on the market, it can become overwhelming.

The best thing you can do is speak to your financial adviser, who will be able to narrow down which providers will suit you best. You can then shop around to discover the right equity release deal for you and your family.

Are you wondering how equity release fees work? Here’s the information you need.

How Much Can You Release?

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Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor 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.

 

  1. ‘Living Poor to Die Rich’? Or ‘Spending the Kids’ Inheritance’? Attitudes to Assets and Inheritance in Later Life
    2006 Journal of Social Policy Volume: 35, Issue: 2, pp 175-192 DOI: 10.1017/S0047279405009475
    Karen Rowlingson
    University of Bath 12
  2. Overcoming obstacles to equity release
    2007 Housing, Care and Support Volume: 10, Issue: 1, pp 18-22 DOI: 10.1108/14608790200700004
    Rachel Terry ,Richard Gibson
    Joseph Rowntree Foundation 1
  3. Attitudes towards housing equity release strategies among older home owners: A European comparison
    2021 Journal of Housing and The Built Environment pp 1-20 DOI: 10.1007/S10901-021-09823-2
    Joris Hoekstra ,Kees Dol
    Delft University of Technology 12
  4. Structuring and Pricing Home Equity Release with Better Sharing of House Price Risks
    2018 Social Science Research Network DOI: 10.2139/SSRN.3305050
    Doug W. Andrews 1,Jaideep S Oberoi 2
    1 University of Waterloo ,2 University of Kent 12
  5. Pensions and housing wealth: Quantitative data on market conditions for equity release schemes in the EU
    2016 Thuenen-Series of Applied Economic Theory
    Peter Hennecke ,Pierluigi Murro ,Doris Neuberger ,Flaviana Palmisano 1
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Jason Stubbs
Equity Release Expert

Jason Stubbs Is a Specialist in the Equity Release Sector. He Enjoys Helping Older People Who Are Struggling Financially Get Out From Under Financial Pressure.

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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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Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Mark Patterson
Mortgage Expert

Mark Patterson is a well-known expert in mortgages. He has been working as an expert for over 15 years, and he specializes in the UK mortgage market.
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Katherine Read
Consumer Affairs Writer

She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date

Nicola Date
Writer & Journalist

Nicola is a financial writer for EveryInvestor 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.