100% Recommend

Dave Beard

Expertly compared by Dave Beard

Products Updated April 27, 2021

14 providers expertly compared:

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Aviva

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Equity Release
& Lifetime Mortgages

Rated 4/ 5

All credit types

Equity release is a way of supporting yourself later in life by unlocking tax-free cash from the value of your home, without having to move out. Request a quote today via our approved advisors

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Hodge Lifetime

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Equity Release
& Lifetime Mortgages

Rated 4/ 5

All credit types

Hodge Lifetime launched the first equity release plan in 1965, and is the longest established equity release provider in the UK. Its products are provided by Julian Hodge Bank Limited. The 55+ Mortgage has been designed specifically with the older borrower in mind.

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Legal & General

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Equity Release
& Lifetime Mortgages

Rated 4/ 5

All credit types

A Legal & General Lifetime Mortgage allows homeowners who are over 55 and have a property worth at least £100,000 (£150,000 for ex-council properties) to release cash from their home.

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Bath Building Society

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Equity Release
& Lifetime Mortgages

Rated 4/ 5

All credit types

Our Retirement Mortgages are aimed to meet the needs of older borrowers who are either looking to release equity, remortgage with us because your current lender has an age limit or move home. The Society can lend a minimum of £50,000 and up to a maximum of £200,000.

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One Family

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Equity Release
& Lifetime Mortgages

Rated 4/ 5

All credit types

OneFamily Lifetime Mortgages enable you to borrow a one-off lump sum, and then choose whether you want to make monthly interest payments, a more flexible arrangement of one-off voluntary payments, or no payments at all.

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Pure Retirement

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Equity Release
& Lifetime Mortgages

Rated 4/ 5

All credit types

Pure Retirement was founded on the belief that everyone deserves to enjoy their later years. As recent winners of the Moneyfacts Age award for Equity Release Lender of the Year, they provide a simple and straightforward solution for accessing the value tied up in your home.

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Liverpool Victoria

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Equity Release
& Lifetime Mortgages

Rated 4/ 5

All credit types

Equity release from LV lets you release tax-free cash from your home, without having to move, which you can then spend on your garden or home, on a holiday, to treat family or friends or to make your retirement more comfortable.

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Prudential

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Equity Release
& Lifetime Mortgages

Rated 4/ 5

All credit types

Equity release is a way of supporting yourself later in life by unlocking tax-free cash from the value of your home, without having to move out. Request a quote today via our approved advisors.

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Retirement Advantage

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Equity Release
& Lifetime Mortgages

Rated 4/ 5

All credit types

As part of Canada Life, Retirement Advantage has more capability than ever before to help customers feel better equipped to make the most of their retirement. Request a quote via our approved advisors

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More 2 Life

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Equity Release
& Lifetime Mortgages

Rated 4/ 5

All credit types

more 2 life provides a wide range of lending solutions for the over 55s. They work exclusively with qualified advisers and their lifetime mortgage plans help customers release cash from their homes to help deliver a more comfortable and flexible retirement.

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Just Retirement

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Lifetime Mortgages
Home Reversion Schemes

Rated 4/ 5

All credit types

There are two main types of equity release product: lifetime mortgages, which are mortgages that are secured against your home; and home reversion plans, where you sell all or part of your property to a reversion company in exchange for money. Request a quote via our approved advisors

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Bridgewater

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Home Reversion Schemes

Rated 4/ 5

All credit types

Bridgewater is a multi award-winning specialist home reversion provider. They offer a safe and secure solution for homeowners looking to realise equity tied up in their property.

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Retirement Plus

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Home Reversion Schemes

Rated 4/ 5

All credit types

Retirement Plus usually offers a range of home reversion and equity release plans to homeowners who are aged 65 and over

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Canada Life

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Equity Release
& Lifetime Mortgages

Rated 4/ 5

All credit types

Equity release is a way of supporting yourself later in life by unlocking tax-free cash from the value of your home, without having to move out. Request a quote today via our approved advisors

Read our customer and visitor reviews for this product:

Rating: 5 / 5 with 2 votes

Good calculator tool

by Mrs Taylor

Found the equity release calculator tool to be very useful.

Helpful broker

by J Hatch

I spoke with an advisor who went through my options. They were helpful and polite. Would consider using this company.

Use Lending Expert to Find the Best Equity Release Provider For You

At Lending Expert, we understand that life is short and releasing money from your home could change and significantly improve your quality of life. Whether you are looking to fund your lifestyle, make home improvements and give money to your children, we are pleased to help you find the most affordable equity release plan on the market. 

Equity release can be extremely effective and life-changing. But it is important to do your homework to avoid overpaying, whilst still putting money aside for a rainy day and towards your children’s inheritance. With our price comparison table and collaboration with Age Partnership, we are delighted to present you with a list of competitive options and help you start your journey today.

 

What is Equity Release?

Equity release offers a practical way to release cash that is tied up in your home – and receive a large lump sum. Available to those 55 years and over, you can unlock around 20% to 60% of your home’s value and use this for everyday purposes, or whether you would like to make home improvements, consolidate debts or pay for a family wedding.

If you have been living in a property for many years and have paid off most of the mortgage, you will now have a lot of money tied up in your home. With an equity release provider, you could release cash from your home and receive a lump sum, tax-free, or receive smaller instalments over time.

Importantly, you and your partner can continue to live in your home until you die or go into long-term care. At this point, the lender recovers their stake and the rest is distributed amongst the remainder of your estate.

 

Key Features

 

  • Unlock 20% to 60% of the property’s value (lifetime mortgage)
  • Could sell 80% to 100% of the property’s value (home reversion)
  • Must be over 55 years old
  • Receive one lump sum or small payments, tax-free
  • Continue to live in your home until you die or go into care
  • Can put money aside for inheritance
  • Can still benefit if the property increases in value
  • Interest charged circa. 3% per month
  • Arranged within a matter of weeks (usually 4-6 weeks)

 

What Are The Types of Equity Release Schemes?

There are over 100 types of equity release, with combinations to draw down money on command, in stages, put money aside for inheritance and even purchase the property back. But broadly speaking, equity release companies offer two propositions:

 

Lifetime mortgages: This is the most common form of equity release and this is when you release money, capped at a fixed interest rate. You still remain the owner of the property and can continue living in it. You can choose to take out a lump sum or in bits – and interest is charged each month with the option to roll this up until the end of the loan term.

 

Home reversion plans: Home reversion is less common, but involves selling off a chunk of your property and even as much as 80% or 100% if you need to. This is likely to be below market rate. You will continue to live in the property until you die, now with a much larger cash sum. Once you die or go into care, the property is sold off and the remaining funds are shared between your estate. 

 

Reasons To Use Equity Release 

 

 

Equity Release Example:

If you are 60 years, your home is worth £500,000, you would be able to release £100,000 to £300,000 in one lump sum or in chunks.

 

What Are The Terms of Equity Release?

 

  • Must be over 55 (lifetime mortgage) or 60 (home reversion)
  • Choose between one lump sum or regular monthly payments
  • Will need to own the property outright or paid off most of the mortgage
  • Pay interest of around 3% per month to the lender
  • Will be valid until you die or go into long-term care – your partner too


Pros of Equity Release 

Equity release has some great benefits. With life expectancy in the UK at 81 years old, there is a real opportunity to release money that is tied up in your home and otherwise not being used. With this injection of cash, you can use it to benefit and fund your lifestyle, whether it is travelling abroad or sharing this with your children and grandchildren. 

With this process, you can continue to live at your residence until you die or go into long-term care and this will apply to your partner too, so they are not left homeless or to face a heavy bill.

In fact, with lifetime mortgages, there is a ‘no negative equity guarantee’ which means that if there is outstanding debt when the property is sold, neither you or your estate will be liable to pay for it – so you are not leaving a financial burden on your children.

If you apply for a lifetime mortgage, you are not selling off part of your home, so you will continue to benefit if it increases in price for the next 10, 20 or 30 years or more.

 

Cons of Equity Release 

The downsides of equity release is that it can be expensive, because interest is charged on top, starting from around 3% per month. So if you live longer, the interest will continue to be paid or rolled up until the end of the loan term.

If you release a lot from your property, such as 60% through a lifetime mortgage or 80% or more through home reversion, you and your children do not benefit as much if the property goes up in value – which it is likely to do over a few decades.

When you speak to an advisor from Age Partnership, be sure to explain what you want to include and what you want to avoid. Equity release mortgages come in many variations, so you might want to choose one that puts money aside for your children as inheritance or helps you benefit if your home goes up in value. Make sure to consider your priorities and request them during your application.

 

How Much Does Equity Release Cost?

Equity release providers will typically charge interest of 3% each month or rolled-up until the end of the loan term. Additional costs initially may include a property survey (up to £1,000), solicitor’s fees (may be a few thousand) and broker fee (£1,500). 

Of course, if you die or go into long-term care, the lender will look to recover the amount they have lent you – and this might be from selling the property or via your estate. Any money leftover is given to your estate.

 

How Does Equity Release Affect My Children’s Inheritance?

Equity release can be designed to protect your children’s inheritance. The final amount left to your children and grandchildren will depend on the remaining value of the property, minus any interest paid.

Many providers offer an Inheritance Protection Guarantee so that you can secure a certain percentage for your children.

There are other options available such as ‘interest-only lifetime mortgages’ where you can pay a monthly interest to bring down the overall sum and more is left for your children. There are also ‘voluntary repayment lifetime mortgages’ available so that you can make the occasional payment to bring down the overall cost and put more aside as inheritance.

 

How to Apply for Equity Release with Lending Expert

To start the process, compare equity release providers using our comparison table provided. You can then click on ‘Apply’ and this will take to our partner at Age Partnership who will ask for a few details and start your application today.

You will need to confirm your address and how much equity you have in your home. Subject to further checks and finding the best equity release scheme for you – your application can be funded in a matter of weeks.

FAQ

Equity release allows homeowners over the age of 55 to release equity or ‘give up a stake’ in their property and receive one large lump sum. Equity release is commonly used to finance your remaining lifestyle, pay off debts or fund any home improvements.

You can typically release 20% to 60% of the value of your home (lifetime mortgage) or up to 100% with a home reversion plan.

No, any lump sum or income you receive from releasing equity from your home is tax-free, because it is being released from a property that you have paid for over time and own.

Yes, absolutely, this is a key benefit of equity release, as it allows you to stay in your existing home or flat until you die or move into long-term care.

Yes, equity release schemes are portable, meaning that they can be transferred to other properties. However, it is always important to speak to your provider who may adjust the terms of your agreement on a case-by-case basis.

The general minimum age for using equity release is over 55 years and over 65 for home reversion plans. The providers we work with at Equity Release Online will present different terms and conditions based on the products you have requested.

Yes, you are giving up a stake in your property and for that stake, an equity release provider will give you a lump sum which is tax-free. The provider benefits by charging interest (either each month or rolled up) or by hoping that your property has increased in value over time.

Interest is charged by equity release providers. There are different plans available, so you can choose to pay monthly interest or let the interest roll up, known as compounding. Or you could request an arrangement where you pay no interest at all, but give up a larger chunk of your property. Please be aware that the equity release process will typically include arrangement fees, legal fees and valuation fees. While some of these may be able to be added to the amount you release, others may have to be paid upfront.

Yes, however the money you release can only be taken from the part of the property that you own. You do not need to own the property outright.

Yes, you can cancel your lifetime mortgage or equity release scheme, but doing so within a certain timeframe may incur early penalties. Whilst you can repay early, please be aware of any fees for doing so. This information will be presented to you clearly in writing before you proceed.

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