Are you looking for the best home reversion plan as a UK retiree in 2024? You’re in the right place.

Unlocking the value of your home is a big decision, and finding the right provider can make all the difference. That’s why we’ve crafted this guide to help you navigate the top 5 home reversion providers with confidence.

Our financial experts at Every Investor have meticulously researched the market, so you can make an informed choice on your home reversion journey.

Let’s dive in and discover which provider could be the perfect fit for your future…

What Is a Home Reversion?

A home reversion is a key component of equity release schemes in the UK, where homeowners sell a portion of their property in exchange for a lump sum or regular payments.

This option allows you to access your property’s value while retaining the right to live in it for the rest of your life.

Home reversion is particularly appealing to seniors seeking financial flexibility in retirement without the burden of monthly repayments, making it a strategic choice for those looking to unlock the value of their home while maintaining lifelong habitation rights.

Who Are the Leading Home Reversion Providers in the UK?

The leading home reversion providers in the UK include Crown, Bridgewater, and Hodge, each renowned for offering high-quality home reversion plans that cater to diverse homeowner needs with a strong commitment to excellence.

For those considering a home reversion plan, engaging with these providers can provide valuable insights and help in making an informed decision.

Let’s take a look at the top choices…

#01. Bridgewater

Bridgewater, a key player within the Retirement Bridge Group, manages over 4,500 reversion plans across the UK.¹

Established in 1912, Bridgewater is authorised and regulated by the Financial Conduct Authority (FCA) and operates under the supervision of the Equity Release Council (ERC).

Bridgewater offers a variety of home reversion options designed to suit different financial needs, with options including no rent, fixed rent, and escalating rent plans.

Simply put

The principle is straightforward: the more rent you agree to pay, the more money Bridgewater releases as a lump sum, allowing homeowners to tailor their equity release to their specific financial goals.

For those concerned about inheritance, Bridgewater’s home reversion plans also provide options that include inheritance guarantees, ensuring your loved ones are protected.

#02. Crown

Founded in 2001, Crown is a provider that uses private investors to fund its equity release plans, and all plans adhere to the Equity Release Council’s (ERC) code of conduct, ensuring tenants cannot be evicted under this protection.²

What sets Crown apart is its flexibility, made possible by its unique funding structure.

Crown accepts properties that many other lenders would reject—those that fall outside standard property criteria—making it a valuable option for homeowners with non-traditional properties.

Best of all

Crown offers the ability to sell up to 100% of your property’s value while giving you the flexibility to choose a payment plan that suits your needs.

#03. Bank of Ireland

This is a provider associated with Post Office Money®.

It offers a range of mortgage options specially created for borrowing money even into your retirement.

#04. Beverly Building Society

Beverley Building Society is a provider based in Yorkshire and is a regional society.

It offers a mortgage that is an interest-only retirement mortgage, which is an excellent route for your finances as it will prevent you from potentially paying too much interest.

#05. Hanley Economic Building Society

Hanley Building Society was established in 1854 in Stoke on Trent. ³

This building society is willing to lend money to retirees up to the age of 80, allowing you the freedom to borrow money for your retirement if you choose them as your provider.

#06. Hinckley and Rugby Building Society

Hinkley and Rugby Building Society offer fixed as well as discounted retirement mortgages.

You can approach them once you turn 55 years of age, with no maximum age, and they may lend you up to 60% of the value of your property, also known as the LTV.

Best of all, it does not require early repayment charges.

#07. Hodge Lifetime

Launched in 1965, Hodge Lifetime introduced its first equity release plan, making it the longest-established provider in the UK.⁴

Initially, Hodge offered a unique retirement mortgage that blended elements of residential retirement and lifetime mortgage plans, and this product required borrowers to make monthly interest payments until the homeowner either passed away or entered long-term care.

However, Hodge has since shifted its focus and is in the process of transferring its equity release plans to other providers—a strategic move that allows Hodge to concentrate on other areas within the financial sector.⁵

#08. Ipswich Building Society

Situated in Suffolk, Ipswich Building Society offers options like discounted and fixed-rate retirement mortgages.

You must be 55 years of age or older to take this mortgage, with the minimum that you can borrow being £25,000 and a maximum of £500,000.

#09. Leeds Building Society

Leeds Building Society has a residential mortgage range for people up until the age of 85.

They have also removed the age cap at the end of their Buy-to-Let mortgages.

#10. Mansfield Building Society

Mansfield Building Society provides RIO mortgage options with fixed or discounted rates.

The building society has different lengths you can choose from, in terms of 2 to 3 years, with the aim to be a trustworthy and secure mutual organisation.

It will use 100% of your pension salary, and it assesses each individual’s situation to determine the best plan for you.

#11. Marsden Building Society

Marsden Building Society was created in 1860 and offers fixed and discounted-rate retirement mortgages with a 3 or 5 year fixed-rate RIO for those over the age of 55 who own a home.⁶

It will lend up to the value of 50% of your property, with the minimum value being £150,000.

#12. Newbury Building Society

Newbury Building Society, a smaller mutual society, offers a single discounted rate 5-year retirement interest-only (RIO) mortgage, with one of the standout features being coverage of around £700 of your property valuation fees—and they do not charge legal fees.

The RIO mortgage comes with a discounted rate, and overpayments are allowed; however, early repayment charges apply if you repay within the first 3 years.

During this period, you can overpay up to 20% of your initial loan without penalty.

#13. Penrith Building Society

Penrith Building Society offers an entire residential mortgage range, making it suitable as a retirement mortgage as there is no age limit attached to it.

You would also be borrowing up to 50% of your property value if you are 55 years of age or older.

#14. Scottish Building Society

Established in 1848, the Scottish Building Society is the only society situated in Scotland.⁷

They allow homeowners to borrow money up to the age of 85, allowing you to borrow up to 50% of your property value, with a minimum being £30,000, and a maximum being £300,000.

Your income determines the maximum you can borrow, and that could be your pension income as well.

#15. Swansea Building Society

Swansea Building Society was set up in 1923, offering a single retirement mortgage plan that is solely for properties in Wales.⁸

It may lend up to 60% LTV (your property’s value), and you can be lent money up until the age of 85.

You will need to receive an income of £18,000 minimum; you must be retired; and 50% of your income must come from your retirement income specifically.

#16. Tipton and Coseley Building Society

‘The Tipton‘, a small building society, is situated in the West Midlands.

With them, you may be able to obtain a fixed or discounted rate retirement mortgage of many varieties.

It has options like 3 and5 year terms as well as a whole-term discounted mortgage with its “later life lending range.”

High Street Banks and Lifetime Mortgages

The ‘big 6’ high street banks—Halifax, Barclays, Lloyds, HSBC, Santander, and Royal Bank of Scotland (RBS)—currently do not offer lifetime mortgages or other equity release plans.⁹

If you’re considering a lifetime mortgage, you’ll need to look at other providers, such as those listed above.

In recent years, Nationwide has entered the lifetime mortgage market. However, instead of offering these plans directly, they partner with Pure Retirement to provide these services on their behalf.

Common Questions

In Conclusion

In today’s uncertain economic times, more people are exploring home reversion and retirement mortgages to secure their financial future.

These solutions offer the peace of mind needed to enjoy quality time with your family without compromising your lifestyle or financial stability.

The challenge lies in finding the right provider that truly understands your unique needs and circumstances.

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