Nationwide Equity Release: What to Know in 2024?

Nationwide no longer offers new equity release products but continues servicing existing customers alongside its comprehensive banking and financial education services.
  • Last Updated: 12 Apr 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
What Is the Process for Applying for Nationwide Equity Release? Find Out Here if You Qualify to Take Out a New Plan With Nationwide or if You Should Look for Alternatives. Read On...
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Key Takeaways
  • Dive into available equity release options with free advice and consultations—Nationwide’s team walks you through all the information, making sure you’re clued in.
  • Grab cash flexibly, tapping into your equity stash only as needed, and keep a tighter rein on your estate’s future by trimming the loan’s growth with optional repayments.
  • The major perks include a hefty lump sum and zero monthly dues; however, interest may pile up, possibly diminishing your inheritance.

Nationwide’s equity release portfolio exclusively offers the Lifetime Mortgage, designed for homeowners aged 55 and older. This option enables individuals to tap into their home equity without the necessity of moving out, providing a flexible financial solution in retirement.

Unique to Nationwide, this plan incorporates a no negative equity guarantee, ensuring that the loan balance will never exceed the property’s sale value, thereby protecting the borrower’s estate from potential financial overreach.

In This Article, You Will Discover:

    Did you know that equity release with Nationwide could unlock your financial freedom in retirement? It’s not just a plan; it’s your ticket to a worry-free future.

    By continuing, you’ll dive deep into the specifics of Nationwide’s equity release options. Learn how to leverage your home’s value to its fullest potential without selling up. Keep reading to unlock these secrets.

    NOTEEvery Investor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of Every Investor only and may not reflect the views or opinions of Nationwide. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Nationwide.

    Who Is Nationwide, and What Role Do They Play in the Equity Release Market?

    Nationwide is a leading financial institution in the UK, playing a significant role in the equity release market by offering various plans to homeowners.

    Who Is Nationwide and How Do They Offer Equity Release?

    Nationwide is a prominent building society in the UK, known for offering several financial services, including mortgages and savings, to homeowners seeking to access their property’s value in retirement.

    It stands out as the world’s largest building society, with a strong focus on customer service and community values.

    Unique to Nationwide, they are member-owned, which means profits are reinvested for the benefit of their members rather than shareholders.

    This structure influences their approach to products and services, including those relevant to over-65s.

    What Exactly Is Equity Release and How Does Nationwide Fit In?

    Equity release offers homeowners aged 55 and older a way to monetize their property’s equity without selling, through a process known as equity release lending, and Nationwide fits in by offering tailored equity release plans to meet diverse financial needs.

    It transforms part of your home’s value into accessible funds.

    This financial solution is unique in its repayment structure: the loan, plus interest, is paid back from your home’s sale, generally after the homeowner’s demise or move into care, allowing for financial flexibility during life.

    An equity release company specializes in offering financial products that allow homeowners to access the value of their property.

    How Can You Apply for Nationwide’s Equity Release, and What Are the Qualifications?

    To apply for Nationwide’s equity release, it’s important to meet qualifications like minimum age and property value, then consult Nationwide for a tailored application process.

    How Do You Apply for Equity Release via Nationwide?

    Apply for equity release via Nationwide by meeting age and property criteria, then undergo a consultation to explore suitable options.

    You’d first have an initial appointment with a dedicated advisor, who will assess your financial situation, discuss your needs, and guide you through the options available.

    The advisor ensures you understand the implications of equity release, such as its impact on inheritance and potential changes in your tax position.

    The paperwork will require details about your property and financial situation. The form is then submitted to Nationwide for approval.

    During this phase, your home will be professionally valued to determine the maximum amount you can release.

    On approval, the funds are made available for you to access.

    Remember, equity release isn’t right for everyone, and professional advice is crucial in this decision-making process.

    How Do You Qualify for an Application for Nationwide Equity Release?

    To qualify for Nationwide equity release, it’s important to ensure eligibility for their tailored financial solutions; however, since Nationwide is not offering new equity release products at the moment, only customers with existing plans are eligible for equity release. 

    They have the option to switch plans or increase the amount of equity they are releasing.

    Existing customers who wish to do this can contact a Nationwide mortgage advisor by telephone on 03301 73 12 32 in the following time slots:

    • Mondays to Fridays between 8am and 6pm.
    • Saturdays between 8:30am and 4pm.

    How Does Nationwide Maintain Its Reputation and Compliance in the Equity Release Sector?

    Nationwide maintains its reputation and compliance in the equity release sector through stringent adherence to regulatory standards and a focus on customer satisfaction.

    What Is Nationwide’s Track Record with Equity Release?

    Nationwide’s track record with equity release showcases a commitment to ethical practices, customer satisfaction, and regulatory compliance, securing its position as a trusted provider.

    Nationwide launched its later life mortgage range in 2017,2 which included three types of equity release products: retirement capital and interest mortgage, retirement interest only mortgage, and lifetime mortgage. 

    These products were designed to help older homeowners access some of the equity in their homes while retaining ownership and control of their property. 

    However, Nationwide has since stopped accepting new applications for its later-life mortgage range. 

    Nationwide still services its existing equity release customers, but does not offer any new products or accept any new applications.3

    What Are Nationwide’s Regulatory Credentials for Equity Release?

    Nationwide regulatory credentials for equity release will show that it is authorised and regulated in the UK by the Financial Conduct Authority (FCA)13 and the Prudential Regulatory Authority (PRA), which ensures that consumers are protected and treated fairly. 

    Nationwide’s FCA details:

    What Are Nationwide’s Official Trading Names for Equity Release?

    • Nationwide Building Society
    • Hearth

    What Services Are Nationwide Allowed to Offer?

    According to the FCA, the services Nationwide can offer is listed here.

    What Are Nationwide’s Registration Numbers?

    • FCA Firm reference number: 106078
    • Companies House number: 0000355B

    Does Nationwide Comply with Equity Release Council’s (ERC) Standards?

    Yes, Nationwide does comply with the ERC’s standards and is a member of the ERC.14

    What Updates Have Nationwide Made to Their Equity Release?

    Nationwide has made updates to its equity release by withdrawing its equity release products from the market until more favourable conditions presented themselves again.

    In 2022, the equity release market was performing better than it ever has thanks to low interest rates between 5.25% to 6.30%*. 

    However, September’s “mini-budget” resulted in dramatic market disruptions, which caused interest rate rises and led to the decision to withdraw its equity release products.5

    What Makes Nationwide’s Equity Release Options Advantageous?

    Nationwide’s equity release options are advantageous for their competitive interest rates, flexible terms, and strong customer support, appealing to a broad range of homeowners.

    What Advantages Come with Nationwide’s Equity Release Options?

    Nationwide’s equity release options offer advantages like low-interest rates, flexibility in withdrawals, and a no-negative-equity guarantee, catering to diverse financial needs.

    On the other hand, since Nationwide does not offer new equity release products, it only publicly discloses information that applies to changes to existing plans. 

    Existing customers have already been extensively advised when they took out these plans.

    So if you have a lifetime mortgage and you are considering increasing the amount of equity you are releasing or switching your plan, it is worth noting the following:6

    • You can borrow between £10,000 and £1mln if you live in the UK. 
    • Your deal period is fixed for life.
    • Your interest rate will range between 5.25% to 6.30% AER*
    • The maximum loan-to-value (LTV) is dependent on your age.

    * While correct at the time of writing, these figures may have changed since our last update.

    How Flexible Are Nationwide’s Equity Release Options?

    Nationwide’s equity release options are highly flexible, allowing customized withdrawals and repayments to suit individual homeowner needs and financial circumstances.

    Nationwide allows existing equity release customers to either increase the equity released on their existing plan or switch plans. 

    Remember:

    Paying off your equity release loan early is possible, but steep early repayment charges may apply.

    What Are the Costs Associated with Nationwide’s Equity Release Plans?

    The costs associated with Nationwide’s equity release plans include interest rates, application fees, and potential legal and valuation fees, transparently outlined for customers.

    What Are Nationwide’s Interest Rates and Fees for Equity Release?

    Nationwide’s interest rates and fees for equity release are competitive and designed to offer value while ensuring transparency and affordability for homeowners, ranging from 5.25% to 6.30% AER.*

    Here are the interest rates and fees you may discover.

    What Are the Current Charges for Nationwide Equity Release?

    Current charges for Nationwide equity release encompass interest rates and administrative fees, detailed in their equity release product literature.

    If you are an existing customer who wishes to switch plans or release more equity on your existing plan, you can consult your contract for applicable fees.

    This exact information is not currently available on Nationwide’s website.

    What Are the Latest Rates for Equity Release with Nationwide?

    The latest rates for equity release with Nationwide ranges from 5.25% to 6.30% AER.*

    Existing customers who wish to switch plans or release more equity on their existing plans can expect to do so at an these rates.

    * While correct at the time of writing, these figures may have changed since our last update.

    Can You Get Equity Release with a Mortgage from Nationwide Now?

    No, you can’t get equity release with a mortgage from Nationwide now, as Nationwide does not currently offer new lifetime or retirement mortgages.

    However, members with an existing plan can engage with an advisor if they are considering switching a deal or want to borrow more.4

    What Puts Nationwide Ahead in the Equity Release Market?

    Nationwide’s competitive advantage is that it is not a bank, putting it ahead in the equity release market. 

    Rather, it is the world’s largest building society (or mutual) and is owned by its members.7 

    This means that members are able to provide input on how Nationwide is run, shaping the products and services to serve them in the best way possible.

    Why Consider Nationwide for Equity Release?

    Consider Nationwide for equity release as it focuses on customer satisfaction, mutual ownership structure, and its innovative use of technology.

    More information:

    • Commitment to Customer Satisfaction: It aims to put the interests of it’s customers first and offer them a range of products and services that are tailored to their needs. Nationwide consistently ranks highly in customer satisfaction surveys, which is a testament to it’s customer-centric approach.
    • Owned by it’s Members: This ownership structure allows Nationwide to focus on its customers’ needs rather than on generating profits for shareholders. As a result, Nationwide can offer competitive rates on savings and mortgages and invest in it’s products and services to ensure that it meets the needs of it’s members.
    • Innovative Use of Technology: It was one of the first companies in the UK to launch a mobile app. Nationwide has also invested in digital platforms, such as its online mortgage application system, which has streamlined the mortgage application process for it’s customers. These factors have helped Nationwide build a strong customer service reputation and attract a loyal customer base.

    What Should You Be Aware of When Using Nationwide’s Equity Release?

    When using Nationwide’s equity release, be aware of the impact on inheritance, potential interest accumulation, and the importance of considering long-term financial planning.

    More information:

    • Limited Branch Network: Nationwide has a smaller branch network than some of the larger banks in the UK. This could be a disadvantage for customers who prefer to do their banking in person or who live in areas with limited branch access.
    • Limited International Services: Nationwide’s focus is primarily on the UK market, so it may not offer as many international banking services as some of the larger banks. This could be a disadvantage for customers who travel frequently or who conduct business overseas.
    • Higher Fees on Some Products: While Nationwide offers competitive rates on savings and mortgages, it may have higher fees on some products compared to other banks. Customers should review the fees and charges for each product carefully before opening an account.

    Overall, while Nationwide has several advantages, customers should carefully consider their banking needs and preferences before opening an account to ensure that their products and services meet their requirements.

    How Can Customers Gain Insights and Manage Their Equity Release Plans with Nationwide?

    Customers can gain insights and manage their equity release plans with Nationwide through online tools, personalized advice, and dedicated customer support services.

    How Can You Use Nationwide’s Equity Release Calculator?

    Nationwide’s website does not feature an equity release calculator since it does not offer new equity release plans at the moment.

    You can, however, explore the approximate amount you could release from your home by using our user-friendly equity release calculator.

    What Do Customers Say About Nationwide Equity Release?

    Customers have a lot to say about Nationwide equity release, though the reviews are mostly mixed.

    Although Nationwide is the world’s biggest building society and has tens of millions of customers, it is currently not rated very favourably on Trustpilot.8 

    Customer complaints vary widely in nature, with most negative reviews coming from customers who are in the process of finding a new service provider.

    However, considering that less than 4,000 of several million customers (or less than 0.01%) have reviewed Nationwide on this popular platform, it is certainly worth discovering for yourself.

    How Does Nationwide Assist Current Equity Release Clients?

    As previously mentioned, Nationwide currently does not issue new equity release plans to anyone; however, customers with existing equity release plans are able to either increase the amount they have borrowed (if eligible) or switch plans.

    Where Can You Find More Information or Get in Touch with Nationwide Regarding Equity Release?

    For more information or to contact Nationwide regarding equity release, visit their website or local branches, or call their dedicated equity release team.

    Where Are Nationwide’s Offices Located?

    Nationwide offices are located in the UK and headquartered in Swindon, England.

    Nationwide currently has 618 branches; you can find one near you on its website.9

    The head office is located at:

    Nationwide House, Pipers Way, Swindon, SN38 1NW

    There are also administration centres in Northampton and Bournemouth.10

    How Do You Reach Nationwide for Equity Release Queries?

    To reach Nationwide for equity release queries, you can get in touch with a Nationwide representative as follows:

    What Is Nationwide’s Customer Service Helpline?

    Nationwide’s customer service helpline is the number applying to your query as specified on its website.11

    How Do You Email Nationwide Regarding Equity Release?

    Nationwide does not provide a unique email address through which to contact them; instead, follow the instructions on its website to get in touch with them based on the type of help you need.12

    Does Nationwide Offer Job Opportunities?

    Yes, Nationwide does offer job opportunities.

    Nationwide advertises vacancies on its website for roles across all of its branches in the UK.15

    The roles available fall into the following categories:

    • Tech Talent
    • Head Office Roles
    • Our Society
    • Customer Support and Advice

    Frequently Asked Questions about Nationwide’s Equity Release

    What Is Nationwide's Equity Release Offering in the UK?

    How Does Equity Release with Nationwide Work for Over 65s?

    What Advantages and Disadvantages Does Nationwide Equity Release Have?

    What Are the Requirements for Getting Nationwide Equity Release?

    What Risks Should You Consider with Nationwide Equity Release?

    How Was Nationwide Reviewed for Equity Release?

    What's Nationwide's Financial History Relevant to Equity Release?

    What Other Financial Products Does Nationwide Provide Besides Equity Release?

    What Retirement Planning Options Does Nationwide Provide Apart from Equity Release?

    What Makes Nationwide's Equity Release Options Special?

    What Restrictions Apply to Using Funds from Nationwide Equity Release?

    Does Nationwide Offer Financial Counseling for Equity Release?

    How Does Nationwide Secure Customer Information During Equity Release?

    What Age Limits Apply to Nationwide's Equity Release Products?

    Can I Get Equity Release with Nationwide If I Have an Existing Mortgage?

    What Properties Qualify for Equity Release with Nationwide?

    Can I Repay Nationwide's Equity Release Loan Early Without Penalties?

    What If I Move or Sell My Property with Nationwide Equity Release?

    Are There Any Hidden Fees or Charges That I Should Be Aware of When Considering Nationwide’s Equity Release?

    Does Nationwide Reward Referrals for Equity Release?

    Can I Switch My Equity Release to Nationwide?

    Wrapping Up with Nationwide’s Equity Release

    Nationwide is a large company with over 15mln members. Founded in 1884, it has, no doubt, weathered several storms.

    Although it’s online rating leaves a lot to be desired, determining whether Nationwide is the best provider for you can not be done by reading a review. 

    If you are an existing Nationwide equity release customer and are looking to switch plans, find out more about equity release, or release more money then contact an advisor to help you through the process.

    Read More: Halifax Equity Release

    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 in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.

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