In this article, we are going to explain
If you are over the age of 55, then equity release may be right for you for several reasons, including:
If staying in your current property is your aim, then one of the options available to you is an equity release mortgage on your home. You can read more about the pros and cons of equity release here.
You can use two main equity release types.
Either through a “lifetime mortgage” or “Home reversion”. Both of these release some of the cash tied into your home and affect your current mortgage. These do have early repayment charges in the vast majority of cases however, so aren’t a good choice for a short-term cash injection!
You can read more here about what an equity release calculator is. It will give you a good and general idea of what you can expect to take out as a loan.
Here is a short video explaining what equity release is.
If you decide that releasing equity is a good option for you, here’s a handy list of some of the leading equity release providers for loans. This is not an exhaustive list and is in no particular order.
We’ve only included those authorised and regulated by the Financial Conduct Authority and members of the Equity Release Council.
Please note that we do not provide advice on or endorse any particular product or provider listed here. This is an indicative list to give you an idea of the type of providers in the market. Please do your own research before deciding which one to choose.
Sunlife provides many financial, planning and insurance services to those over 50’s. As a trusted provider for those in the later stages of life, Sunlife provides a lot of information on their website about releasing equity and provides you with an advisor when you first contact them.
They also know the unique challenges of being at that age, so they provide more support than most.
This way, you can be safe knowing you’re making the right decision if you decide to release some of the equity in your home! Sunlife also has a 60-second equity release calculator.
Aviva is the largest insurance company in the UK and has existed for over 320 years, so they are a pretty well-established company regarding finances, health and insurance!
They are also What Mortgage award winners for the equity releasing loans. They only come in mortgages; their minimum loan must be £15,000 and you must be mortgage-free, or have a small one on your property. The Financial Conduct Authority also regulates Aviva.
OneFamily is a cooperative company owned and run by its customers. As a result of this, their loans are highly adaptable and can offer fixed or variable rates on lifetime mortgages and home reversion.
When you contact them regarding your loan, they will offer free, impartial advice that compares their product against others in the marketplace which will help you stay informed. It is worth noting that participating in one of their services brings other benefits by becoming a stakeholder in their business.
Pure Retirement calls themselves the “Experts in Equity Release”, placing themselves as specialists in the area. They make it their mission to not only provide great loans but also to give first-class customer service. They only offer a lifetime drawdown mortgage in one lump sum. They are also regulated by the Financial Conduct Authority.
LV= is best known for their car insurance; however, they are an all-cover insurance, investments and retirement services provider. They offer equity release for equity in your home with two distinct loans: a flexible payment loan and a lump sum variety.
The flexible loan allows you to borrow different amounts at different times (up to a pre-determined cap).
Legal & General are a very widely-known pensions and retirement company. They offer a few different types of equity release for you with their mortgages. You can choose to have a cash lump sum with no interest payments or pay the monthly interest as it accrues.
You also have the choice to draw a monthly income from your property with their income mortgage, and some types of loans have no early repayment charges (Though this is negotiated at the start of the loan).
Legal & General is a very well-protected and regulated company authorised by the Equity Release Council and the Financial Conduct Authority.
More2Life are another company that specialises in helping people release equity in their home. They also offer choices for your equity release plan including “enhanced” plans.
These plans take your medical history, conditions and overall health into account which can give you better terms including better interest rates and higher amounts to borrow.
Just provide all kinds of retirement financial solutions and an equity release mortgage. Some of their loans have a fixed monthly interest, that is agreed upon at the loan’s start. Just also provide you with a home reversion service if that is what you feel is more appropriate to your current situation.
In some circumstances, Just offers medical enhancements to your plan if you are ill.
Finally, Canada Life is a retirement, investment and protection company that has been in business in the UK for over 115 years.
They offer many different types of equity release plan including – uniquely, a second home mortgage. They also offer a voluntary payment plan which also negates early repayment charges.
Call Boon Brokers on 0333 567 1607 to discuss your equity release requirements.
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All equity release and mortgage advice is provided by Boon Brokers Limited, which is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757.
If you take out a product with Boon Brokers, we will receive a fee for introducing you to them. Boon Brokers provides advice for free and without obligation. By contacting Boon Brokers through us, the cost of any equity release product would be the same as if you had contacted them directly.
The fee we receive is used to help keep this site operational and to produce new content.
Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
The table below shows you some of the best equity release rates, as at December 2023, for lifetime mortgages, from some of the leading equity release providers in the UK.
These rates may have changed since this table was updated and should be taken as indicative only. There may also be other providers not listed on this table that could offer better deals. In addition, the providers and products noted below may not be right for your particular circumstances. Therefore, we strongly recommend that you speak to an equity release adviser, who will be able to provide you with information on the latest rates, that are applicable to you.
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| Product Name | Interest Rate | Type of product | Offers |
|---|---|---|---|
| Just For You – J2.5 | 6.22% | Fixed | Free ValuationNo application fee |
| Just For You – J1 | 6.30% | Fixed | Free ValuationNo application fee |
| Premier Flexible Pearl | 6.43% | Fixed | Free Valuation |
| Premier Optional Payment Pearl | 6.43% | Fixed | Free Valuation |
| Horizon 240 Drawdown | 6.43% | Fixed | Free Valuation |
| Classic Drawdown Super Lite 2 | 6.47% | Fixed | Free Valuation |
| Horizon 260 Drawdown | 6.47% | Fixed | Free Valuation |
| Classic Elite Drawdown Super Lite 2 | 6.47% | Fixed | Free Valuation |
| Premier Flexible Pearl | 6.48% | Fixed | Free Valuation |
| Premier Optional Payment Pearl | 6.48% | Fixed | Free Valuation |
| Horizon 240 Drawdown Fee Free | 6.49% | Fixed | Free ValuationNo application fee |
| Classic Drawdown Super Lite 1 | 6.52% | Fixed | Free ValuationNo application fee |
| Premier Flexible Pearl | 6.52% | Fixed | Free Valuation |
| Premier Optional Payment Pearl | 6.52% | Fixed | Free Valuation |
| Classic Elite Drawdown Super Lite 1 | 6.52% | Fixed | Free ValuationNo application fee |
| Flexible Pearl | 6.53% | Fixed | Free Valuation |
| Optional Payment Pearl | 6.53% | Fixed | Free Valuation |
| Enhanced Lifestyle Flexible Option | 6.53% | Fixed | Free ValuationNo application fee |
| Horizon 260 Drawdown Fee Free | 6.55% | Fixed | Free ValuationNo application fee |
The equity release rates have been sourced from Equity Release Supermarket. These indicative rates and incentives may have changed since this article was last updated. Therefore, they should only be taken as a guide and we cannot guarantee their current accuracy. Please also note that we do not provide advice on or endorse any particular product listed here. The rate you are offered will depend on your individual circumstances and subject to lender approval. We recommend that you speak to an equity release advisor to see what the best options are for you.
If you take out a product with Age Partnership, we will receive a fee for introducing you to them. By contacting Age Partnership through us, the cost of any equity release product would be the same as if you had contacted them directly. The fee we received is used to help keep our site operational and to produce new content.
A lifetime mortgage is a special instrument that allows you to take a further mortgage on your house while keeping your current ownership. To do this, the property MUST be your main residence.
You also have a few choices of how to tailor the mortgage to your needs; you could choose to make monthly repayments on the mortgage or let the interest build-up, you can also fence off some of the value of the home for your inheritance allowing your family to take advantage of some of the equity.
Each provider has their own variations on the mortgage, so it’s definitely worth shopping around for the best equity deal you can find!
Here is a short video explaining what a Lifetime mortgage is.
While a lifetime mortgage allows you to retain ownership of the property, a reversion sells your property to a provider allowing you to live in the property rent-free until you pass on. You can get this money back either as one lump sum, or monthly instalment payments.
It is worth noting that with this option, you will normally have a guarantee on having no negative equity.
This means that once your house is sold after you’ve passed, even if the value of the sale doesn’t add up to the original value of the loan plus agents’ and solicitors’ fees etc., you will not have to pay anything to your provider.
Here is a video that explains the advantages and disadvantages of Home Reversion plans.
While releasing equity safely might seem like a good idea, there are some disadvantages to consider:
While it may seem an easy way to use your home to pay for your grandkids’ college or a pay off a debt, it does come with some specific advantages and disadvantages that you need to think hard about!
Below, we have covered many of the most popular questions you might have about equity release.
An equity release product is a financial solution that enables homeowners aged 55 and older to access tax-free cash from a portion of their home’s value. The advantages of equity release include supplementing retirement income, paying off an existing mortgage, financing home improvements, and providing financial support to family members.
Equity release mortgages (also known as lifetime mortgages) and home reversion schemes are the two primary types of equity release schemes.
A lifetime mortgage is a type of equity release product that allows homeowners to borrow money against the value of their property, without having to sell their home or move out. The amount borrowed, plus any interest accrued, is repaid when the homeowner dies or sells the property.
Home reversion schemes involve the sale of a portion of the home to a home reversion provider in exchange for a tax-free lump sum or a regular income.
A free equity release calculator allows you to enter basic information about your property, such as its market value and your age, to estimate the amount of cash you could potentially release via an equity release product.
The amount you can release depends on lender requirements, circumstances, and the equity release plan you select.
Aviva, Legal & General, LV=, and Age Partnership are some of the best equity release providers in the UK.
These providers stand out in the equity release market due to their competitive lifetime mortgage interest rates, variety of equity release options and dedication to upholding the Equity Release Council’s standards.
However, you should compare all providers to see who offers the best products for your personal circumstances. A specialist equity release advisor can help you with this.
Home reversion programmes provide a tax-free lump sum or regular income without requiring monthly payments. However, they could result in the homeowner receiving less than the property’s market value.
Equity release mortgages, however, allow homeowners to retain full ownership of their property. Still, they accrue interest over time, which can significantly reduce their beneficiaries’ inheritance.
Seeking professional guidance from an independent financial adviser ensures that you can access objective information about various equity release plans and make an informed decision based on your unique financial situation, needs, and objectives.
A consultant can also assist you in comprehending the effects of equity release on means-tested benefits, tax implications, and possible early repayment fees.
The Equity Release Council is a trade organisation that establishes high standards for its members, including equity release providers and advisers, to ensure that home equity release products are safe and transparent.
The Council enforces a code of conduct and a set of safeguards, including the negative equity guarantee, which ensures that homeowners using an equity release product from a Council member will never owe more than the value of their property.
Prior to releasing equity from your home, you should consider factors such as your current financial situation, future needs, and existing mortgage.
Tips for safely and effectively releasing equity include:
Interest rates and accrued interest substantially impact the total cost of an equity release mortgage.
Over time, the interest accrues, increasing the amount you owe, ultimately reducing the remaining equity in your property and impacting the inheritance you can leave to your beneficiaries.
To control these expenses, you can:
Consider the following steps to find a reputable equity release company and a suitable product:
It is difficult to say which equity release company you should avoid, as it often depends on your individual circumstances. However, an equity release advisor should be able to help you pick a suitable provider. They will undertake ‘due diligence’ on your behalf.
However, some tips for you are to
Consider the above before making a decision.
The adverts for Boon Brokers on this page have been signed off as a Financial Promotion by Boon Brokers Limited, to ensure that they are in compliance with Section 21 of FSMA. Boon Brokers Limited is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757.
Rob writes and edits the content produced by the rest of the team. He has a degree in History from Leeds University and has producing, reviewing and editing the site since 2016
Researching and considering various factors, such as the company’s reputation, experience, product features, fees and charges, and customer service, are required to select the best equity release company. You can compare different providers online or seek advice from a qualified professional who can assist you in understanding your options and selecting the most appropriate provider for your needs.
Equity release companies provide a variety of products, including lifetime mortgages, home reversion plans, and a combination of the two. It is essential to understand the features and risks associated with each product and determine which one meets your needs and preferences the best.
To ensure you’re getting a good deal on equity release, it’s essential to compare various providers and products and the interest rates, fees, and other costs associated with each. Additionally, you can seek independent guidance from a qualified equity release advisor, who can help you understand the costs and benefits of various products and providers.
Equity release may be an option for some homeowners who wish to access the equity in their home, but it is not appropriate for all. It is essential to consider the risks and benefits of equity release and investigate alternative options, such as downsizing or utilising other savings or investments. Seeking the counsel of a qualified professional can assist you in comprehending the risks and benefits of equity release, allowing you to make an informed decision as to whether it is appropriate for you.
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Unlike most equity release advisors, Boon Brokers do not charge any fees! Have a free consultation to see how they can help.
You can speak to Boon Brokers on the number below and discuss your options
0333 567 1607
Use the equity release calculator and see how much money you could receive.
You can book a call back from for an equity release specialist, who can call you when it's conveniant
All equity release advice is provided by Boon Brokers Limited, which is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757.
If you take out a product with Boon Brokers, we will receive a fee for introducing you to them. Boon Brokers provides advice for free and without obligation. By contacting Boon Brokers through us, the cost of any equity release product would be the same as if you had contacted them directly.
The fee we receive is used to help keep this site operational and to produce new content.
Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
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