Equity release is a way to unlock the value of your property and turn it into a cash lump sum. As a rule, you can take the money you release in one lump sum, in several smaller amounts on which you’ll pay interest, or as a combination of both, if you’re 55+. You don’t need to have fully paid off your mortgage to do this.
Please note companies are ranked in no particular order and data comes from each company’s website and was last updated in March 2023.
| COMPANY NAME | MINIMUM AGE | MINIMUM PROPERTY VALUE |
|---|---|---|
| Aviva | 55 | £75,000 |
| Hodge Lifetime | 55 | £100,000 |
| More 2 Life | 55 | not stated |
| Legal & General | 55 | £100,000 |
| LV | not stated | not stated |
| Just | 55 | £70,000 |
| Canada Life | 55 | not stated |
| Retirement Bridge | 60 | £100,000 |
| Nationwide | 55 | not stated |
| Responsible Lending | 55 | not stated |
| OneFamily | 55 | £70,000 |
| Retirement Plus | 65 | not stated |
| Pure Retirement | 60 | not stated |
Topics
1. Aviva
- The UK’s largest insurance company with over 15 million customers
- Lump sum or smaller sum equity release options
- Lifestyle Lump Sum Max lets you borrow a one-off cash sum from £15,000
- Lifestyle Flexible Option lets you borrow an initial lump sum from £10,000
- Pension annuity schemes also available
- Award winning services: Personal Finance Awards & What Mortgage
- Member of the Equity Release Council
- Mixed online reviews
Website: Aviva
Read the full Aviva equity release review.
2. Canada Life
- Lifetime Annuities and Pension Schemes available
- CanRetire Fixed Term Income Plan lets you create a guaranteed lifetime income
- A large portfolio of retirement and investment products also available
- Useful online support tools and jargon-busting FAQs
- Award winning services
- Rated AA for Financial Strength
- Fairly negative online reviews
Website: Canada Life
Read the full Canada Life equity release review.
3. Hodge Lifetime
- One of the longest established equity release providers in the UK
- Lumpsum Lifetime Mortgage provides a tax free lump sum
- Flexible Lifetime Mortgage provides an initial tax free cash lump sum and an option to make further cash withdrawals
- Home Reversion Plan offers market-value rates
- Hodge Lifetime Retirement Mortgage provides a tax-free lump sum
- Over 55s Mortgages and Pension Annuities also available
- Award winning services
- Clean, easy-to-navigate website which readily lists pros and cons
- No customer reviews available
Website: Hodge Lifetime
Read the full Hodge Lifetime equity release review.
4. Just
- Lump Sum Lifetime Mortgage provides a tax free lump sum
- Interest Serviced Lifetime Mortgage operates like a drawdown lifetime mortgage
- Home Reversion Plan allows you to sell all or part of your home in return for a tax-free cash lump sum or regular income
- A range of other financial services also available
- Simple plain English website with a helpful jargon buster
- Useful online calculators available
- Online customer reviews tend to be quite negative
Website: Just
Read the full Just equity release review.
5. Legal & General
- One of Europe’s largest insurance and asset management groups
- Fixed Term Retirement Plan lets you use your pension pot to buy a guaranteed income
- Pension Annuity also offers a guaranteed income for life
- Cash-Out Retirement Plan lets you use your pension pot to get regular income payments
- Various Lifetime Mortgage products available
- A large range of related services also available including investments opportunities and ISAs, pension schemes, life cover and insurance
- Online customer reviews tend to be quite negative
Website: Legal & General
Read the full Legal & General equity release review.
6. LV
- A company with longevity and a rich 175 year history
- Lifetime Mortgage Lump Sum+ releases equity
- Flexible Lifetime Mortgage releases some equity now with an option for more later
- A large range of related services including insurance, bonds, ISAs and investments, income protection and investment opportunities
- Winner of Investment Life & Pensions Moneyfacts Awards
- A clear, well laid-out website
- Good customer reviews; straightforward process
Website: LV
Read the full LV equity release review.
7. More 2 Life
- Launched in 2008 as specialists in later life lending
- Flexi Lifetime Mortgage offers loans up to £1.85m
- Capital Lifetime Mortgage offers loans up to £1.5m
- Tailored Lifetime Mortgage offers loans up to £600,000
- Maximum Lifetime Mortgage offers loans up to £750,000
- Prime Lifetime Mortgage offers loans up to £600,000
- Fastpath online portal speeds up the administration process
- Useful online tools and calculators
- Multiple award winner including What Mortgage Awards, Financial Adviser Awards and Moneyfacts awards
- Favourable online customer reviews
Website: More 2 Life
Read the full More 2 Life equity release review.
8. Nationwide Building Society
- The seventh largest cooperative financial institution and the largest building society in the world
- Lifetime Mortgage provides a tax free lump sum
- Retirement Interest Only (RIO) and Retirement Capital & Interest (RCI) products
- A range of complementary products including Savings and ISAs, Current Accounts, Personal Loans and Investments
- Poor online customer reviews
- No helpful online calculators or support tools
Website: Nationwide Building Society
Read the full Nationwide Building Society equity release review.
9. OneFamily
- A mutual organisation owned by, and run for the benefit of, its members
- A large range of related services including Lifetime ISAs, Junior ISAs, Ethical Equity ISAs, Over 50s Life Cover, Child Trust Funds and Bonds
- Various useful online tools available
- Rated five stars for Over 50s Life Cover by Defaqto
- Award winning products
- Decent online customer reviews, praised in particular for its simple, straightforward processes
Website: OneFamily
Read the full OneFamily equity release review.
10. Pure Retirement
- Pure Retirement Plan allow you to access equity and turn it into cash
- A quick process which is usually completed within 8 weeks
- Award winning products and services
- Website is easy to navigate and understand, written in plain English
- A narrow product range
- No online reviews or customer feedback
Website: Pure Retirement
Read the full Pure Retirement equity release review.
11. Responsible Lending
- Partnered with global investment bank Credit Suisse, one of the largest investment banks in the world
- Lump Sum Lifetime Mortgage provides a one-off lump sum
- Drawdown Lifetime Mortgage provides an initial lump sum now, with the option to take extra amounts in the future
- A clear, easy to understand website with helpful safeguarding information
- Dedicated advisers will create personalised illustrations to facilitate product understanding
- A narrow product range
- No online reviews or customer feedback
Website: Responsible Lending
Read the full Responsible Lending equity release review.
12. Retirement Bridge
- The UK’s biggest administrator of Home Reversion Plans
- Home Reversion Plan – No Rent – allows you to sell between 25-100% of your property for a cash lump sum
- Home Reversion Plan – Fixed Rent – similar but with fixed monthly rent payments
- Home Reversion Plan – Escalating Rent – similar but with monthly rent payments which will increase at 2.5% per annum compound
- A simple, clean website easy to navigate with a useful online calculator
- Advisor Portal designed to help customers
- Winner of Best Home Reversion Provider award
- A narrow product range
- No online reviews or customer feedback
Website: Retirement Bridge
Read the full Retirement Bridge equity release review.
13. Retirement Plus
- Retirement Plus Property Plan lets you sell all or part of your property at less than its market value in return for a tax-free lump sum, a regular income
- For over 65s only
- As a long-standing member of the Equity Release Council
- A fairly basic website with little product information
- No online reviews or customer feedback
- The company is not taking on any new customers at present due to allocated funds being exhausted
Website: Retirement Plus
Read the full Retirement Plus equity release review.
How does equity release work?
Equity release is a way to unlock the value of your property and turn it into a cash lump sum. As a rule, you can take the money you release in one lump sum, in several smaller amounts on which you’ll pay interest, or as a combination of both, if you’re 55+. You don’t need to have fully paid off your mortgage to do this.
How much does equity release cost?
For the lifetime mortgage equity release the typical rate is about 5%, although some rates are under 3%, which is significantly higher than those for most standard mortgages. If you’re not making monthly repayments to reduce the debt, then the interest compounds and compounds. As well as the actual cost of the interest, you’ll have to pay arrangement fees. These can typically tally £1,500-£3,000 in total, depending on the type of plan being arranged. They can include such costs as application fees, fees for legal work and surveyor fees.
What’s the difference between a Lifetime Mortgage and a Home Reversion Plan?
The fundamental difference between the two is when you take out a lifetime mortgage you still own your own home. But with home reversion plans, you actually sell a share of your home in exchange for a lump sum of money or a lifetime of regular income. With home reversion plans, there is no interest building up.
How much equity release can I get?
The amount of equity you can release from your home ranges from 20% to 50% of the property value. However, this depends on your age and the value of your home. Usually the older you are, the more equity you can release. Releasing equity tied up in your home involves taking out an equity release mortgage.
What happens when you die?
When you die, your equity release plan is repaid. Your beneficiaries must inform your equity release lender and with a lifetime mortgage they usually have 12 months after your death in which to repay your plan. Once your equity release plan is repaid, the money left over will then form part of your inheritance.
What are the risks and pitfalls with equity release?
Equity release schemes involve borrowing against your home, (or in the case of Home Reversion Plans – selling all or part of your home) and may work out more expensive in the long term than downsizing to a smaller property. Releasing equity will reduce the value you have in your home and therefore the amount of inheritance you will be able to leave.
It can also make the process of leaving your property to beneficiaries more difficult – especially in the case of a home reversion plan. Should you wish to end the plan it may be difficult and you may incur penalties to do so. And equity release may affect your entitlement to state benefits and grants.