Equity Release Companies

The Best Equity Release Lenders in Dec 2021

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 Dec 2021

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The Best Equity Release Companies of Dec 2021

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 refers to the use of financial arrangements to help homeowners release cash tied up in their property, while allowing them to remain living in their home.

Learn More: What Is Equity Release?

How Does Equity Release Work?

Simply put, equity release is a UK product that allows you to unlock the cash tied into your home, with no payments required in your lifetime. Instead, the loan, plus interest, is repaid from the sale of your home when you pass away or move into permanent care.

Learn More: How Does Equity Release Work?

Equity Release Types

There are two equity release options available to you.

  • Lifetime mortgageis a mortgage secured on your property (provided it’s your main residence), while retaining ownership.
  • Home reversionis where you sell 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 until you die, but you have to agree to maintain and insure it.

How to Find the Best Equity Release Deals?

To find the best deal on equity release, look for a whole market financial adviser that specialises in equity release. They’ll analyze plans by all regulated lenders, finding the perfect deals at the time.

how did we choose the best equity release companies

How Did We Choose the Best Equity Release Companies?

It can be difficult to choose which companies to work with when so many, including banks, offer such services. Each business will provide you with different plans, terms, and services, so it’s important to check carefully.

For example, you might discover that certain companies will cater to different age ranges than the industry norm. For example, they might have a minimum age of 60 or 65, rather than the usual 55.

In addition, interest rates and charges may differ, while others may only allow you to unlock a certain amount of equity.

The best way to find the right plan is to compare all of these elements from several providers. This way, you can make an informed decision based on a wealth of evidence.

We’ve done exactly that to put together our list of best companies. We started our investigation by turning to plans that are regulated by the Equity Release Council. Unregulated plans have less accountability, so they’re not worth considering.

So, what do we consider the most essential aspects while evaluating providers?

  • Minimal early repayment charges.
  • No early repayment charges if you move into a lower-value property.
  • Penalty-free repayments if you’re in a relationship 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.

Hopefully, one of these will cater to your needs.

which is the best equity release company

Which Is the Best Equity Release Company?

More2Life is our current top company. The main reason for this is due to its fixed early repayment charges that reduce with time.

The Best Equity Release Plan Providers in Dec 2021

Let’s make things simple.

We’ll take a detailed look at each of these plans, highlighting what makes them the creme de la creme.

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.

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

Learn More: More2Life Equity Release

Aviva

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

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

Legal & General

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

Legal & General 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

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

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

equity release pros cons

Equity Release Pros & Cons

Equity Release Pros

It’s a 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 stay living in the property. 
  • Fixed interest rates – The interest rate on most lifetime mortgage plans is also fixed throughout the entire term of the loan.

Cons

  • Lower property value – it could reduce the value of 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.

Learn More: What the Pros & Cons of Equity Release & Is it a Good Idea?

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.

How Much Can You Release?

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Value of Your Home?

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Equity Release Companies

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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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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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Consumer Affairs Writer

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

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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.