Standard Life Equity Release Review (2024) Is It Worth It?
- Last Updated: 09 Sep 2024
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Contributors:
Expert Verified- Standard Life, governed by strict FCA regulations, advisor guidance, and Equity Release Council standards, lets retiree homeowners access their property’s value without selling.
- Benefits include a boost in retirement income with tax-free money, flexible payouts, and a no-negative equity guarantee.
- The option to make voluntary payments to manage interest accumulation over time is there; however, early repayments can trigger significant charges.
Equity release is on the rise amongst those reaching retirement in the UK, and it is no surprise considering the benefits.
Could Standard Life be the provider to help you achieve that?
In This Article, You Will Discover:
Equity release is already a complex decision without needing to wade through the many plans available on the market.
Where do you start? What plan do you choose, and which provider do you settle on?
Our team of expert researchers has tirelessly reviewed the equity release market to provide you with the information you need to make these decisions.
Could Standard Life be your equity home release solution?
NOTE: EveryInvestor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of EveryInvestor only and may not reflect the views or opinions of Standard Life. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Standard Life.
Who Is Behind Standard Life’s Equity Release Offerings?
Standard Life, a trusted financial institution, offers tailored equity release products for homeowners.
Who Is Standard Life?
Founded in 18251, Standard Life is a life insurance, pensions, and long-term savings company in the UK.
In 2018 the ‘Standard Life Brand’ was acquired by the Phoenix Group2, UK’s most prominent long-term savings and retirement company.
Today it offers pensions, retirement, and investment solutions across the UK, Ireland, Germany, and Austria.
Standard Life Home Finance has partnered with Key Group to offer it’s clients innovative and flexible lifetime mortgage solutions.
What Services Does Standard Life Offer?
Standard Life offers services that include lifetime mortgages, pension schemes, and more.
A complete list of the services it offers:
- Pensions
- Retirement Solutions
- Investment Solutions
What Can Over 55s Gain From Standard Life’s Equity Release?
Over 55s can unlock the value of their homes for retirement through Standard Life’s equity release plans.
What Is Equity Release For Over 55s?
Homeowners aged 55+ can use equity release to access the value in their homes for immediate financial benefit, without relocating.
It’s a way to liquidate part of your property’s worth.
What sets equity release apart is its repayment plan; the debt, including interest, is settled from your home’s sale, usually after significant life events like death or moving into care.
Read More: Equity Release Over 55
Does Standard Life Offer Equity Release or Lifetime Mortgages?
Yes, Standard Life offers equity release in the form of lifetime mortgages.
Standard Life’s Equity Release Schemes
Standard Life’s equity release schemes are called Horizon.
It offers a fee-free and a paid-fee plan, both of which are lifetime mortgages.
Why Consider Standard Life for Your Equity Release Needs?
Standard Life stands out for its flexible equity release solutions and dedicated customer support.
Why Should You Consider Using Standard Life?
You should consider using Standard Life as your equity release provider because:
- It is members of the Equity Release Council3.
- It is authorised and regulated in the UK by the FCA (Financial Conduct Authority)4.
- It offers competitive interest rates.
- It considers flexibility a key feature of it’s lifetime mortgages.
What Are the Advantages and Disadvantages of Standard Life?
The advantages and disadvantages of Standard Life are it offers competitive lifetime mortgages but they could affect your eligibility for benefits.
A closer look:
Standard Life Pros
The pros of securing a lifetime mortgage with Standard Life include:
- The plan options include a fee-paid or a fee-free option.
- It’s interest rates are very competitive.
- It offers flexible LTV options.
- Guaranteed inheritance protection is automatically included.
- Downsizing protection is included.
- Early repayment fees fall away after eight years.
Standard Life Cons
As with most decisions in life, there are cons that need to be considered.
In this case, they are:
- The negative effect a lifetime mortgage will have on your home’s value.
- Equity release can affect your eligibility for state benefits.
- Equity release reduces the amount you can pass on to your heirs.
- Compound interest can easily double your loan if no repayments are made.
- Once you have taken out an equity release plan, no other borrowing can be taken out using your home as security.
- Equity release may not be suitable for everyone, which is why your advisor will ask you to consider other options before proceeding.
How Does Standard Life Structure Its Equity Release Schemes?
Standard Life’s equity release schemes are designed with a variety of features to meet diverse homeowner needs.
What Are the Features of Standard Life Equity Release?
As seasoned experts in the field of equity release, we understand that Standard Life Equity Release provides several noteworthy features.
The plan allows homeowners aged 55 and above to unlock tax-free cash tied up in their property without having to move.
Furthermore, with Standard Life, you have the flexibility to release equity in a lump sum or smaller amounts over time.
Importantly, Standard Life Equity Release is regulated by the Financial Conduct Authority, ensuring a secure and reliable service.
Another unique feature of Standard Life Equity Release is the ‘No Negative Equity Guarantee’.
This ensures that you will never owe more than the value of your home, thereby protecting your estate from incurring debt.
Also, interest rates are fixed for life, giving you predictability and peace of mind.
Moreover, Standard Life offers an optional inheritance protection feature, allowing you to safeguard a percentage of your property’s value for your beneficiaries.
Thus, Standard Life Equity Release provides a flexible, secure and considerate approach to releasing equity.
Standard Life’s Equity Release Scheme Features
Standard Life’s equity release scheme features include:
- Fixed early repayment charges5 for eight years, after which they fall away.
- The option of making partial repayments from the start.
- Guaranteed inheritance protection.
- Downsizing protection.
- Exemption from early repayment charges in the case of one partner’s death.
- Lump sum and drawdown options.
- Typical loan amounts between £10,000 and £1mln.
- No-negative equity guarantee.
What Costs Are Associated With Standard Life’s Equity Release?
Costs include competitive interest rates and transparent fees, integral to Standard Life’s equity release plans.
What Are Standard Life’s Equity Release Interest Rates?
Standard Life’s equity release interest rates range from 5.65% to 5.85%* APR6.
*While we regularly review our rates, these may have changed since our last update.
What Are Standard Life’s Fees?
Standard Life imposes a £995 arrangement fee on their lifetime mortgages*.
Other fees that are applicable when setting up your mortgage include:
- Valuation Fee – Free on Standard Life lifetime mortgages and are valid for six months.
- Solicitors Fee – estimated at £510 but would need to be paid by you directly to your chosen solicitor*.
If you make changes to your lifetime mortgage, the following fees could apply:
- Further lending arrangement fee
- Moving home (arrangement fee) — £500*
- Changes in borrowers
- Transfer of equity
- Part sale of land (admin fee) — £100*
- Unpaid ground rent / service charges (admin fee) — £100*
Should you wish to make any repayments during the life of your loan, you could be liable for a partial repayment fee.
Partial repayments of 10% of your initial loan can usually be made within each twelve-month period*.
*While we regularly review our rates, these may have changed since our last update.
Does Standard Life Have An Equity Release Calculator?
Yes, Standard Life has an equity release calculator on their website.
For an unbiased result, you can also access our simple-to-use equity release calculator to obtain an approximation of the cash you could release from your home.
What Do Customers Say About Standard Life’s Equity Release?
Customer reviews highlight Standard Life’s reliability and the quality of their equity release services.
Standard Life Customer Reviews
Standard Life reviews online are relatively poor, with communication and clarity of information being their biggest complaints.
It has received a 1.8 out of 5 star review based on 190+ reviews.
- Read its reviews on Trustpilot.com.
Standard Life Complaints
Standard Life complaints can be lodged directly on it’s website or via email or phone.
As a company, it prides itself on offering customer-focused support and precise information and will do its utmost to resolve any complaints in a timely manner.
How Can You Contact and Learn More About Standard Life?
For more information or to discuss equity release options, Standard Life is easily contactable via phone and online resources.
How Did We Review the Information On Standard Life?
Our team of professional researchers gathered all current information on Standard Life Home Finance to compile this review.
Note: This article is an unaffiliated, independent review of Standard Life.
Standard Life FCA Details
Trading Names
- Standard Life Assurance Limited
- Standard Life Savings Limited
- Standard Life Pension Funds Limited
- Standard Life Lifetime Mortgages Limited
FCA Permitted Services
- Mortgages and home finance
- Investments
Regulators
Standard Life is regulated by the Financial Conduct Authority.
Registration Numbers
- FCA ref number: 310206
- Companies House number: SC193441
Standard Life Contact Number
The Standard Life lifetime contact number is
0800 188 4815.
Common Questions
What Is Standard Life Equity Release?
How Does Standard Life Equity Release Work?
Is Standard Life Equity Release Safe?
What Are the Benefits of Standard Life Equity Release?
Can I Pay Back Standard Life Equity Release Early?
Is Standard Life a Member of the Equity Release Council?
Who Owns Standard Life?
Standard Life Jobs
Does Standard Life Offer Equity Release?
Is Standard Life Equity Release Safe?
In Conclusion
Standard Life offers flexibility, competitive rates, and valuable extras on their plans.
Settling on an equity release provider can be difficult, even when you have all the necessary information.
For this reason, it is vital that you seek the guidance of an experienced equity release advisor.
Your equity release advisor can compare Standard Life’s equity release products to others on the market to determine whether it is the best equity release provider for your situation.
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.