Prudential Equity Release And Lifetime Mortgage Review in 2024

Are You Considering Prudential for Equity Release? Find Out if It Still Does Equity Release or Any Later-Life Lending Alternatives and What Its Customers Have to Say. Read On…
  • Last Updated: 05 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

  • Prudential no longer offers new equity release plans, including lifetime mortgages, since 2010.
  • Existing Prudential customers with drawdown equity release schemes can still access their funds.
  • Prudential's early repayment charges are linked to the Bank of England base rate, applying only if the rate has fallen since the plan's start.
  • The company is regulated by the FCA, ensuring a high standard of financial service.
  • Prudential's services focus on pensions, savings, investments, and insurance, rather than equity release.
  • Currently, equity release rates are between 5.20% to 6.30%*

Are you wondering what is equity release and how it works? Considering equity release as a means to access a tax-free lump sum in retirement?

Choosing a provider can be the hardest part, especially as the market is constantly changing.

You may have heard about Prudential and may be wondering if they still offer equity release.

We have done the research for you and found out everything you need to know.

In This Article, You Will Discover:

    Keeping up with the changes in the equity release world can be daunting, that is why our team of experts spends hours every day making sure we provide the most current information.

    Therefore:

    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 Prudential. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Prudential.

    Grasping Equity Release Essentials

    For those over 55, equity release is a way to leverage the financial worth of their home equity. It provides an opportunity to convert property equity into cash, without selling the home.

    The repayment of this financial approach is distinct, as it is deferred and fulfilled from the property's subsequent sale, often after the homeowner's critical life developments.

    Who Is Prudential?

    Prudential is a reputable UK-based financial services provider.

    Founded in 18481, to provide loans to professional and working people, their services extended to insurance, investments, and retirement security.

    They are authorised and regulated in the UK by the Financial Conduct Authority (FCA) and have more than a century of experience in the industry.

    Prudential is a subsidiary of M&G Plc2.

    Why Consider Prudential?

    You should consider Prudential because:

    • It is authorised and regulated in the UK by the Financial Conduct Authority (FCA)3.
    • It offers a selection of financial services

    What Services Does Prudential Offer?

    Prudential offers the following services:

    • Pensions and retirement
    • Savings and Investments
    • Insurance

    Does Prudential Offer Equity Release or Lifetime Mortgages?

    No, Prudential no longer offers equity release.

    It did offer lump sum and drawdown lifetime mortgages between 2005 and 2010 but no longer considers additional borrowing or new plans.

    If you are an existing Prudential customer who took out a drawdown equity release scheme you can still contact Prudential to claim your funds, without the need for further financial or legal advice.

    What Are Prudential’s Interest Rates?

    Prudential’s interest rates can be confirmed when you make a request.

    If you are wondering about equity release interest rates, they generally vary from 5.20% to 6.30%* (AER) and are slightly higher than standard mortgage rates.

    *While we regularly review our rates, these may have changed since our last update.

    What Are Prudential’s Fees?

    Prudential’s fees include a £90 charge to access your existing cash reserve facility.

    Should you be considering moving your Prudential plan to a new provider then you could be liable to pay an early repayment charge.

    Prudential's early repayment charges are unique in that they are linked to the Bank of England base rate4.

    They are only applied if the base rate has fallen from the start of the plan - which will generally affect all plans taken out before 2008 / 2009.

    *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.

    Does Prudential Have An Equity Release Calculator?

    No, Prudential does not have an equity release calculator.

    If you are looking for an equity release calculator, use the one below to see approximately how much equity you could release from your home.

    What Are The Advantages and Disadvantages of Prudential?

    Prudential Pros

    • It is authorised and regulated in the UK by the Financial Conduct Authority (FCA).
    • It has more than a decade of industry experience.
    • Your lifetime mortgage is transferrable. 

    Prudential Cons

    • Reduced assets and inheritance when opting for equity release.
    • Penalty charges apply for early repayment.
    • It no longer offers equity release.

    How Did We Review the Information on Prudential?

    We reviewed the information on Prudential based on it's regulatory obligations, online facts, and services.

    The FCA has strict guidelines for financial service providers to adhere to.

    NOTE: This article is an unaffiliated, independent, third-party, review of Prudential.

    Prudential Customer Reviews

    Prudential customer reviews have been quite mixed.

    However, Prudential has been applauded for it's customer service and flexibility.

    What it's customers have said:

    Prudential Complaints

    Prudential complaints can be directed to the team directly on the messaging service online.

    There is also the option to send a letter to the customer relations unit.

    Alternatively, you can contact Prudential by telephone to lodge a complaint.

    Many people have also turned to popular review sites to voice their concerns.

    Prudential is committed to attempting to resolve any issues you may have at it's earliest convenience.

    Prudential FCA Details

    FCA Address

    10, Fenchurch Avenue, London, EC3M 5AG, UK.

    Trading Names

    Prudential is the trading name of Prudential Distribution Limited.

    FCA Permitted Services

    • Savings
    • Investments
    • Insurance

    Regulators

    • Financial Conduct Authority (FCA) 
    • Prudential Regulation Authority (PRA)

    Registration Numbers

    • FCA Ref Number: 139793
    • Companies House Number: 00015454

    FCA Link

    Prudential Contact Number

    Prudential’s contact number is 0800 000 000.

    Common Questions

    Is Prudential a Member of the Equity Release Council?

    Does Prudential Do Equity Release?

    Is Prudential Safe?

    In Conclusion

    While we can not deny that Prudential has a great track record in the finance industry, it is unfortunately not an option for equity release.

    It's years of industry experience and it's regulatory status, provide reassurance regarding the services it does offer.

    If you have decided that equity release is an option you would like to pursue, then get in touch with an experienced equity release adviser to help you with the process and help you choose from the equity release companies in the UK.

    Unfortunately, Prudential is not an equity release match.

    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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