Who Are the Top 16 Home Reversion Providers in 2024?

Are You Looking for the Best Home Reversion Retirement Mortgage Providers in 2024? Discover the Top 16 Providers and What They Can Offer You. Let’s Unpack This.
  • Last Updated: 06 Feb 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui

Key Takeaways

  • The top home reversion providers in the UK are typically well-established financial institutions such as Legal & General, Aviva, and Just Retirement.
  • When looking for a provider, consider factors such as customer service, flexibility of plans, and the provider's reputation in the industry.
  • To compare providers, review their interest rates, product features, flexibility, and customer feedback.
  • Risks associated with home reversion providers include potential negative equity, loss of home ownership rights, and impact on your estate and inheritance.
  • Costs associated with providers can include arrangement fees, valuation fees, legal fees, and potential early repayment charges.

Are you a UK retiree who's considering a home reversion plan?

If that's the case then you should read this great guide to home reversion providers.

Choosing a legitimate and ethical provider is key to the success of your home reversion journey.

In This Article, You Will Discover:

    Our team of expert financial journalists at Every Investor has spent hours researching the financial markets to bring you the best information about home reversion

    Here we have listed the market's top Home Reversion providers:

    Who Are the Leading Home Reversion Providers in the UK?

    In the UK, a select group of companies is renowned for offering high-quality home reversion plans, catering to a variety of homeowner needs with a commitment to excellence and customer satisfaction.

    Aviva, Bridgewater Equity Release, and Just Group are among the leading providers in this sector, each bringing a unique set of benefits to the table.

    Bridgewater Equity Release is particularly noted for its transparency and dedication to customer needs, ensuring clients are fully informed throughout the process.

    Aviva distinguishes itself with flexible and competitive home reversion plans, appealing to a broad audience.

    Meanwhile, Just Group is recognized for providing comprehensive solutions that are both accessible and tailored to individual circumstances.

    For those considering a home reversion plan, engaging with these providers can offer valuable insights into the options available, aiding in making an informed decision.

    #01. Bridgewater

    This company is one of the more prominent companies within the Retirement Bridge Group that manages more than 4500 reversion plans in the UK. 1

    Bridgewater was created in 1912, and they're regulated by the FCA2 ( or the Financial Conduct Authority) and the ERC3 (Equity Release Council).

    Now:

    Bridgewater offers many home reversion options. Most of these offers are focused on tenants paying rent to the homeowner.

    The first option is no rent, the second option is fixed rent, and lastly, there is escalating rent.

    Simply put:

    If more rent gets paid, then more money will be released as a lump sum by Bridgewater.

    And if you want an inheritance guarantee, home reversion can help you with that as well.

    #02. Crown

    Let's take a look at Crown, founded in 2001. 4

    This provider uses private investors to fund its plans.

    All its plans are according to the ERC's code of conduct. This ensures all members peace of mind – tenants cannot be evicted according to this code of conduct.

    Listen to this:

    Crown is one of the few providers that offer great flexibility because investors fund them.

    Crown accepts property that most lenders will not – a property that falls outside the standard property criteria.

    Best of all…

    It'll sell your property up to 100% of its value while you can pay monthly, according to the plan you choose.

    Here we have listed our best Retirement Mortgage providers:

    #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 that's Yorkshire-based and regional society.

    It offers a mortgage that's an interest-only retirement mortgage, which is excellent for your finances!

    I mean, no one wants to pay too much interest.

    #05. Hanley Economic Building Society

    Hanley Building Society was established in 1854 in Stoke on Trent. 5

    It's willing to lend money to people up to the age of 80.

    This allows 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 employ them once you turn 55 years of age with no maximum age. It'll 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

    As mentioned above, Hodge Lifetime was launched in 1965 when it introduced its first equity release plan. 6

    It is the longest-existing provider in the UK. Its retirement mortgage was a hybrid of residential retirement and lifetime mortgage plans.

    Listen to this!

    It's interest-only, and you'll have to repay the interest on a month-to-month basis until the owner of the property dies or goes into long-term medical care.

    However, Hodge has since announced that it is transferring its plans to other providers as it now wants to focus on other areas.7

    #08. Ipswich Building Society

    It's situated in Suffolk, and they offer options like discounted and fixed-rate retirement mortgages.

    You must be 55 years or #older to take this mortgage. The minimum that you can borrow is £25,000 and £500,000 maximum.

    #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 term end for their Buy-to-Let mortgages.

    #10. Mansfield Building Society

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

    It has different lengths you can choose from, terms of 2 to 3 years. It aims to be a trustworthy and secure mutual organization.

    It'll use 100% of your pension salary, and they assess each individual's situation to determine your plan.

    #11. Marsden Building Society

    Another society was created in 1860 and offered fixed and discounted rate retirement mortgages with a three or 5-year fixed-rate RIO for those over the age of 55 who own a home. 8

    It'll borrow you money up to the value of 50% of your property, with the minimum value being £150,000.

    #12. Newbury Building Society

    Newbury Building Society is a smaller mutual society that offers a single discounted rate 5-year retirement interest-only (RIO) mortgage.

    It'll pay about £700 of your property valuation fees, so you do not have to, and it also does not charge you legal fees either.

    Better yet:

    The RIO is discounted, and overpayments are allowed. However, you'll have three years to do early repayment charges.

    Within this ERC period, you can overpay up to 20% of your initial loan.

    #13. Penrith Building Society

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

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

    #14. Scottish Building Society

    Established in 1848, the Scottish Building Society is the only society situated in Scotland. 9

    They allow homeowners to borrow money up to the age of 85. You can borrow up to 50% of your property value, a minimum being £30,000, 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 born in 1923. It offers one retirement mortgage plan that's solely for properties in Wales. 10

    It'll lend you up to 60% LTV (your property's value).

    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.

    You will be lent money up until the age of 85.

    #16. Tipton and Coseley Building Society

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

    With this, you'll be able to obtain a fixed or discounted rate retirement mortgage of many varieties.

    It has options like three and 5-year terms as well as a whole-term discounted mortgage with its "later life lending range."

    High Street Banks & Lifetime Mortgages

    The 'big 6' high street banks are Halifax, Barclays, Lloyds, HSBC, Santander, and Royal Bank of Scotland (RBS). 11

    The 'big 6' do not offer lifetime mortgages at the moment. They also do not provide other equity release plans.

    Therefore, you'll need one of the companies or societies listed above to provide you with a mortgage.

    In recent years, Nationwide has joined the lifetime mortgage market too.

    However, it does not have these plans. They use Pure Retirement instead to do those services on its behalf.

    Common Questions

    Are home reversion plans safe?

    Is taking equity out of your home a good idea?

    When you sell your house what happens to the equity?

    Who are the top home reversion providers in the UK?

    What should I look for in a home reversion provider?

    How do I compare home reversion providers?

    Are there any risks associated with home reversion providers?

    What are the costs involved with home reversion providers?

    In Conclusion

    In the current economic climate, people are turning to home reversion and retirement mortgages for many reasons.

    These mortgages can provide security and stability that is otherwise difficult to find in some parts of the world.

    It also allows you to enjoy your time with your family without sacrificing your quality of life or financial future.

    The key is finding the right provider for you.

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

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