By Tom Philips at December 16, 2024

Best Equity Release Companies 2025

This is an updated guide for 2025.

If you have ever looked into releasing equity from your home, then you will be well aware of just how many products and companies are out there to choose from.

For the majority of people, this can feel incredibly overwhelming and confusing, especially if they’re trying to navigate the equity release world without the help of a qualified equity release adviser.

There are now more equity release products than ever flooding the market, which is why the team at Equity Release Warehouse have put together this handy guide to help you navigate the different products, options and offerings available on the current equity release market.

How does equity release work?

Equity release is a method of accessing your cash from the current value of your home, without having to move out. It’s a special type of mortgage that gives you the cash tied up in the value of your property.

You can receive this as either one lump sum or a series of smaller, regular payments [1].

There aren’t any restrictions on how you can use this cash, most people tend to use it for paying off an existing mortgage, putting the cash towards retirement plans, making home improvements, or financially supporting children with a wedding or education – the choice is completely yours to make.

Equity release comes in different methods. But the most common type of equity release plans are lifetime mortgages and home reversion plans.

Both of these plans are regulated by the Financial Conduct Authority, the watchdog that oversees equity release regulation.

It’s important that you think long and hard before going down the equity release route.

The best place to start is by speaking with an equity release specialist to understand what it involves and the terms and conditions of any plan.

Like all financial arrangements, equity release can come with some risk [1].

The amount you can access is likely to depend on your age and the value of your home, so you will need to make sure that you can afford the repayment plan put in place, like any other mortgage.

Which equity release companies are the best?

At Equity Release Warehouse, we get it. There are now more products than ever flooding the equity release market, which can make it incredibly confusing and difficult for people to choose the right plan for them.

In fact, more and more people are suffering from choice paralysis, meaning that they never actually commit to an equity release plan.

With so many equity release providers on the market can be a whirlwind and real struggle to figure out where to even begin [2].

That’s why we have pulled together this handy guide to provide an overview of some of the best equity release providers currently on the market.

To make sure you are in safe hands, all the providers listed are regulated by the Financial Conduct Authority (FCA) and are members of the Equity Release Council (ERC).

Without further ado, here is our rundown of the best equity release companies for 2024/25 [2].

1. Aviva

Aviva is a giant of UK industry. You’ve probably heard of Aviva for car insurance, pensions, or its use of quirky television adverts.

But very few people know that Aviva ius actually one of the longest serving providers of lifetime mortgages in the UK.

In the past 25 years, Aviva have helped over 200,000 people release over £7 billion in equity from their homes.

Aviva specialises in lifetime mortgages, offering two popular types of plans: A Lifestyle Lump Sum Max plan and a Lifestyle Flexible Option plan.

Both plans cater to the needs of two different equity release clients: the first one provides a single tax-free lump sum amount whereas the second option offers an initial tax-free lump sum followed by ‘cash reserve’ that you can withdraw from at your own pace.

Aviva offers a unique ‘downsizing protection’ feature, which means you can sell your property after the first three years and repay your lifetime mortgage without paying any early repayment charges.

Aviva also boasts relaxed lending criteria compared to other providers. This means that properties such as holiday lets, and commercial properties could be eligible for one of their equity release products.

2. Canada Life

Canada Life is probably less well known to the general population, but they have been around for a while.

Operating in the UK since 1903, Canada Life has built itself up as a specialist in retirement, investments, and protection products.

Canada Life has been providing equity release plans since 2018 but has the backing of over 100 years of financial service expertise.

Canada Life’s lifetime mortgage plans offer a unique approach to equity release plans by allowing the client to tailor the plan to their own individual needs.

They offer all of the standard features of a lifetime mortgage product including lump sum and drawdown options.

Canada Life also offers voluntary repayment plans, which can protect you from early repayment charges. However, all Canada Life products adhere to an eight-year fixed early repayment charge.

3. Just Retirement

Just Retirement has a strong reputation within the retirement services marketplace as an established financial service provider.

By gaining access to its wider financial services business, Just Retirement is able to offer competitive lifetime mortgage rates.

What is unique about Just Retirement is that they not only provider their own lifetime mortgages, but they also finance the lifetime mortgages of other providers – so they have a lot of cash to back themselves up!

This has meant they have been able to provide some of the most competitive rates on the market.

Just Retirement offers a range of lifetime mortgage variations, including lump sum, drawdown, and interest only lifetime mortgages.

They offer unique support for applicants who might be in poor health through their unique underwriting expertise.

Just Retirement also offers a home reversion service aimed specifically at people over 65 who wish to sell a portion of their home to release a cash lump sum.

4. Legal & General

Legal & General is another household name that will be familiar to most readers.

Like Aviva, L&G is well known for their investment and pension products.

But unbeknown to most people is that Legal & General joined the equity release market in 2015 and has grown into one of the most trusted and recognised equity release providers.

They primarily offer two later life mortgages: flexible lifetime mortgage and retirement interest-only mortgage.

The flexible lifetime mortgage range includes and Interest Roll-Up plan or Optional Payment plan.

The Interest Roll-Up plan allows the interest to roll-up without any regular payment required from the homeowner.

Ad-hoc or regular payments can be made if chosen, but this is capped at 10 per cent of the total amount borrowed.

The Optional Payment plan required regular payments to be made to Legal & General at a level determined by the homeowner. These payments can be stopped at any time.

The Interest Only plan is a good option for those looking to release additional equity out of their house.

The Legal & General Retirement Interest Only plan can offer up to 60 per cent loan-to-value, which is more than can be expected from alternative products.

They also offer the benefit of clear future planning as the interest rates are fixed for life – meaning you know exactly how much you will be repaying each month.

5. LV=

LV= is the final household name to feature in this guide. Founded in 1843, LV= remains as a mutual society, serving its members rather than shareholders.

Known for offering car insurance, LV= also provides retirement products and investment products.

LV= range of equity release products includes lifetime mortgages for both lump sum plans and drawdown plans, meaning it caters for both those wishing to receive a lump sum towards a major expense and those wishing for a regular drumbeat of payments.

LV= differs from other equity release providers in that it offers plans for second properties, including second homes and holiday homes.

This makes LV= a serious provider to consider if you have a portfolio of properties.

6. More2Life

More2Life is considered the new kid on the block when it comes to equity release providers. Launched in 2008, More2Life has built itself into a specialist lifetime mortgage provider.

More2Life offer a range of lifetime mortgages, including Flexi Choice, Tailored Choice, Maximum Choice, Capital Choice, Prime Choice.

The Flexi Choice plan offers the most flexibility in terms of choosing between lump sum or drawdown facilities. They also offer varying levels of loan-to-value ratios, interest rates and total amount borrowed – worth exploring if you are still undecided on what you are after.

Tailored Choice is a specialist lifetime mortgage for people applying with medical conditions. An option worth considering if you are suffering from one of their qualified conditions.

Maximum Choice is More2Life’s product for those wishing to release as much equity as possible from their home. Like Flexi Choice, this comes as either a lump sum or a drawdown plan.

Capital Choice is an option worth considering for those who do not need a large amount of their equity released, or don’t need a lump sum.

With a Capital Choice plan, customers will receive a lower interest rate for a smaller loan size; plus, you have the choice to make repayments of up to 10 per cent of the outstanding balance borrowed without incurring any early payment charges.

More2Life plans are only available through selected brokers, so it is worth doing your research if More2Life is the provider for you.

7. Royal London

Despite being founded in 1861, Royal London joined the equity release market in 2023. Royal London Equity Release Lifetime Mortgage products come in three different forms:

Core Standard product – available to homeowners aged 55-84 in Britain. This is either as a lump sum or drawdown based on your individual needs.

Core premier product – this plan is aimed at homeowners in England with high property values. Royal London offers a minimum equity release amount of £100,000 under this plan and a maximum of £2 million.

Principal product – a lump sum product for those aged 55-89 with a minimum equity release amount of £30,000.

How do equity release rates work?

Like all interest rates offered on financial products, the interest rates of equity release products vary from provider to provider, plan to plan.

The interest rate you are offered depends primarily on your circumstances [3].

Some of the factors a lender will take into consideration include:

Age
Home value
Personal health and lifestyle
Total amount of equity you’d like to release

The interest on a lifetime mortgage compounds as time goes on, meaning the total amount can grow larger and larger if you choose not to make any regular repayments.

This is one way a lifetime mortgage differs from a regular mortgage, which entails monthly repayments [3].

It is important to consider the impact of compounding interest to your financial planning when considering how much inheritance you plan to leave to your family.

Do I need financial advice?

If you are considering release equity from your home, then it is advised that you seek financial advice before making any major financial decision, including an equity release plan.

All lenders offering equity release products must, under current guidelines, offer you advice first. For example, Legal & General offer their own in-house advisers to help you find the best deal for your needs.

The upside to this is that you will receive free advice from a genuine expert in equity release.

The downside is that they will only offer your options for Legal & General products.

So, you could potentially be missing out on a better deal or product type to suit your individual equity release needs.

You can get advice from one of two options:

A restricted adviser: they only tend to have access to a limited number of products, so their advice is not guaranteed to include all the possible options on the market.
An independent adviser: they have access to the whole of the market to find the best deal to suit your needs

How Do Equity Release Providers Compare on Rates, Service, & Flexibility?

The interest rates, services and flexibility vary from equity release provider to provider.

Each equity release provider will have its own style and product range to suit their customer base. It is up to you to decide which is the best fit for your equity release needs.

It is essential that you compare equity release lenders across the marketplace as interest rates can fluctuate widely, as can terms and conditions and levels of service.

However, interest rates aren’t the only metric to measure how good an equity release plan is.

When comparing the market, consider the following:

Some advisors charge a fixed rate, while others take a percentage of your loan amount.
Very low interest rates sometimes come with higher fees, so make sure your advisor reads the fine print to you.
Service quality varies, with some providers offering more personalised advice and support than others.
If plan flexibility is important to you, find out which providers offer features like Downsizing Protection and Inheritance Protection.

If customer service is important to you, find a provider that balances competitive rates with excellent service.

What Should You Look For in an Equity Release Company?

We advise you to be selective when finding an equity release company, as this is the best way to ensure you are not vulnerable to scams. Keep in mind all of our suggestions when you are assessing the stability of an equity release company, but also speak to an adviser and other equity release consumers about your decision.

1. Companies that are regulated by the Equity Release Council

If you are familiar with our website, you will know that we are big advocates of the Equity Release Council. This is because we believe ERC-regulated equity release companies are the most trustworthy, and therefore they provide customers with the safest equity release schemes.

If an equity release lender is a member of the ERC, they cannot pick and choose which rules to apply and when. They have to conform to the Equity Release Council’s standards, which immediately makes them more flexible than many other equity release companies.

For example, if you release equity with an ERC member and you realise you want to downsize, they have to allow you to do this without charging you. Another example is that if you want to protect your inheritance for your family, an ERC member must allow you to do this.

It is possible for you to find a reliable equity release provider that is not an ERC member, so do not feel limited by this suggestion. However, it is much simpler to look for ERC status as this guarantees your lender is regulated.

Something else to note is that ERC members can still make mistakes, so you may hear equity release horror stories from people who took out equity with a company that was regulated by the ERC.

However, in this situation, the ERC would reassess the lender and handle the situation professionally if it turns out the customer was mistreated; you can always depend on the comprehensive complaints process.

2. Companies with competitive interest rates

The interest rates vary widely across equity release companies and equity release plans. For this reason, it is extremely important that you look into the interest rate of your preferred equity release company before taking out a loan with them.

We advise that you choose a lender and a plan that offers a fixed interest rate. This is because you will be able to work out how much interest you will owe each year, keeping in mind that equity release involves compound interest.

To do this, you would have to figure out your estimated loan amount, the interest rate quoted by the company, and then calculate how much interest you would be paying on both the loan amount and the established annual interest.

Let’s say your loan amount is £50,000 and your interest rate is 4%. In the first year, you would be charged 4% interest on the loan, which would be £2000.

As a result, the amount of money you owe would rise to £52,000 (assuming you didn’t make any repayments).

Then, in the second year, you would be charged 4% interest on the new loan amount, which is 4% of £52,000 = £2080. The new loan amount would be £54,080.

This occurs each year for the rest of the equity release scheme, so as you can imagine, the remaining loan amount can reach a very high value.

However, with a fixed interest rate, at least you can accurately predict how much interest you will owe and decide whether it is something you are prepared to do. If you go for a variable interest rate, you are risking financial precarity as you will not be able to calculate the amount of interest you will owe, given that it could change.

If you are set on a variable interest rate, make sure you at least find a company that has a cap on its interest to ensure they do not move the interest above a certain percentage.

It goes without saying that lower interest rates are more beneficial for equity release consumers, as it means they will not owe as much interest overall.

It is best to look for lenders offering interest rates as low as 3–5%, as these are the lowest on the market. Some companies charge as much as 8% interest, but this is on the upper end of the scale.

In certain situations, homeowners may be better off going for higher interest rates if it means they can access other great product features, such as downsizing protection, inheritance protection, or a no negative equity guarantee.

However, this is your decision to make, and we advise weighing up the pros and cons with an equity release adviser.

3. Companies that offer a no negative equity guarantee

One of the common equity release horror stories that we hear is customers not repaying their interest, and ending up getting into irreversible debt as a result. This occurs because they end up owing more money than they borrowed to begin with.

As the money is only owed when the homeowner dies or goes into permanent care, this ends up being their family’s burden to bear. The family would be expected to cover the cost of the loan, including all of the interest that built up.

However, the best equity release companies offer a no negative equity guarantee, which prevents your family from having to contribute to your debt when you pass away.

Even if your lender sells your property and still does not have enough money to cover your interest, your family would not be responsible for the debt.

The no negative equity guarantee provides reassurance to equity release consumers, as it means they can spend the loan on whatever they want without fearing that they are putting their family in a vulnerable position.

However, this does not mean that you should always spend your full loan amount. If you have other income, we would recommend only releasing the amount of money you need, as it is always better to keep the compound interest low if you can.

4. Companies that offer inheritance protection

Most equity release consumers want to leave some money to their family when they pass away, but they are unsure whether this is compatible with reducing the amount of equity in their property.

It is certainly possible to find an equity release company that is willing to provide you with inheritance protection. If you get a lifetime mortgage, you can put aside some money for your family. These funds would go untouched until you reached the end of your life, at which point they would be passed on directly to your family.

If you had a home reversion, you would be able to save a share of your property for your family. If the lender’s share increased in value, your family would not benefit from this. However, they would benefit from a rise in value of their own share, and they would be able to sell the share when you died and take the money from the sale.

If you want to find an equity release company that allows you to reserve funds for your loved ones, simply search for equity release products that include ‘inheritance protection’.

If your favourite equity release lender or plan does not offer this, something else you could do is help your family financially while you are still alive. You could pay for things for them, such as education, weddings, and housing, or you could gift them money from your loan.

In doing this, you would be avoiding inheritance tax (which is perfectly legal). This is because equity release funds are not liable for inheritance tax as long as you live for seven years after gifting the money, and you do not receive any of the money back in this time.

5. Companies that do not charge for early repayment

You may believe that it would always cost you money to repay your equity loan early, but this is a common myth of equity release. It is based on truth, as it used to be the case that early repayment charges were very common.

However, there are currently many equity release companies that allow you to make repayments on your loan, either partial repayments or full repayments, without charging a fee. For example, all members of the ERC allow you to do this per ERC standards.

The reason we recommend finding a company that doesn’t charge for early repayment is that it gives you much more flexibility. You never know how your situation may change as you get older, so it is always sensible to have a way out of equity release that does not involve paying a significant amount of money.

Some common reasons for making repayments are: increasing the inheritance you can leave to your family, wanting to downsize, no longer being interested in equity release, and needing to move to a different equity release property for reasons relating to family, health, or location.

Even if you do not take our advice to avoid early repayment entirely, try to find a company with affordable repayment fees. Some companies charge 25% of the remaining loan amount, which can make customers extremely vulnerable if they need to move house.

However, others have early repayment charges on a sliding scale, so you will owe less money the longer you have been an equity release customer. If you took out equity 10 years ago, you may only owe 1% of your remaining loan amount, which is much more affordable than the aforementioned 25%.

6. Companies that offer a wide range of equity release plans

On one hand, it may not be necessary for your equity release company to offer a wide range of plans, as you may be set on one plan and one plan only.

Yet, it is often a very good sign if a lender has many equity release products, as it means they are flexible, and they cater to a wide range of customers. This is important when it comes to personalising your plan, as they most likely have various options for you.

What’s more, if you wanted to switch your equity release plan, you would be able to do this if your lender had many arrangements available. We believe this is incredibly important, as your situation can change and result in your original plan no longer being suitable for you.

For instance, you may take out a drawdown lifetime mortgage in order to benefit from the initial lump sum and the cash reserve. However, you may then become concerned about the compound interest, and decide that a voluntary repayment scheme would be better for you.

If your equity release company did not offer this, you would either have to try to change companies (which can be very tricky) or repay your loan to exit equity release. However, a diverse lender would most likely allow you to change plans.

The ideal situation would be to find an equity release company that offers home reversions, and many different types of lifetime mortgage, i.e. buy to let, second home, voluntary repayment, income, interest only, enhanced, lump sum, and drawdown.

7. Companies that approve a wide range of properties

Again, if you have a standard freehold property and you have paid off the conventional mortgage for it, this point may not be relevant for you.

However, not everyone is in this position, and therefore they should consider finding an equity release company that is open to approving a range of properties, including leasehold properties and retirement apartments.

The only way to find out whether a lender would accept you with one of these properties would be to speak to an equity release adviser and ask them to point you in the direction of a suitable lender.

It is important that you do this before applying directly to a lender, as you could waste your time and money if they have a rule against accepting your type of property, and an adviser would be able to investigate this for you.

If you have been rejected by an equity release company for having a leasehold property or a retirement apartment, don’t give up on the scheme completely. It is possible that there is a lender out there for you, you just have to shop around with the help of a professional adviser.

8. Companies that have affordable application fees

Equity release is not a free scheme, so you will have to pay to make an application to a lender. It is best to compare prices and find a lender with budget-friendly application fees, whilst also ensuring they are reliable and regulated.

In the event that your application is rejected, or you change your mind about equity release, it would be better to have not spent a significant amount on the application. Some customers are passionate about releasing equity, but they are disappointed with their quoted loan amount. If they did not spend a large amount on the application, it is less disappointing when they either choose to apply to another lender, or pursue an alternative to equity release.

9. Companies that have affordable administration fees

Similarly, we would recommend finding an equity release company with affordable administration fees. At the beginning of the scheme, this will help you to keep your spending to a minimum and ensure you have as much money as possible for retirement.

Beyond this, there may be certain adaptations you want to make to your equity release plan that will cost money, so it’s better for these changes to be affordable. For example, try to find a lender that allows you to add and remove people from your loan at a low cost.

Being able to add and remove people is vital in the event that you split up with your partner and decide that only one of you is going to continue with equity release.

Alternatively, you may take out equity when you are single and then later get into a relationship, so it would be ideal for you to be able to make the switch to a joint application easily and affordably.

Some couples even choose to put one name down initially, as one of them is not eligible for equity release yet, and then they later ensure both names are on the plan. This may be necessary if you or your partner is not yet 55 years old, which is the minimum age for equity release.

10. Companies that take into account your individual circumstances

The best equity release companies will tailor their services to you, which involves asking you about your personal circumstances and deciding which of their product features would be suitable for you and your family.

For example, it is very important that they ask which plan you are interested in, to ensure you end up with the right loan for you. They should place an emphasis on the difference between home reversions and lifetime mortgages, but also the unique aspects of each of the eight lifetime mortgages.

Another thing equity release companies should consider is your property value. Properties under £70,000 should be immediately disregarded, but as well as this, there should be a distinction between lower value and higher value properties.

This is because you can release more money from a higher value property, whereas lower value properties are not as profitable. You need to know how much money you would be able to take out early on so that you can make an informed decision on whether an equity loan would be worth it for you.

Is it True that Banks and Building Societies Can Offer Equity Release?

The vast majority of banks do not offer equity release, but the exceptions are Scottish Widows and Nationwide. As for building societies, the only provider is Nationwide (2).

However, some building societies do offer retirement interest-only mortgages, which differ from standard mortgages.

What is an Equity Release Broker & Should I Use One?

Equity release brokers help you to find the right equity release product for you by comparing all of the options that are out there. We recommend using an equity release broker as it is a great way to ensure you have considered all your options, as well as helping you to avoid equity release scams.

It does cost money to get an equity release broker. You will have to pay an upfront fee in most cases, but some equity release brokers charge a commission on your equity loan instead.

What Happens If You are Not Eligible For Your First Choice Company?

If you do not qualify for a loan with your favourite equity release company, you can still look at your other options and try to find the right lender for you. This may involve simply switching lenders, but it could require you to change the type of plan you want to enrol on.

It goes without saying that we do not recommend doing this if you are not drawn to any of the other equity release plans. In this situation, we would advise you to look at the alternatives to equity release.

However, it is unlikely that there will not be another suitable plan for you, as more and more equity release products are being introduced every year, and therefore the scheme is very diverse in 2022.

In terms of how you would deal with the practical side of being rejected by a lender, you would simply speak to an adviser and ask how to apply for equity release with a different lender, or how to apply for a different scheme with the same lender.

This process is straight-forward and is made even easier by the fact that the equity release adviser is able to fill out most of the application on your behalf. As for the rest, they can help you with what to write if you are unsure.

What Happens If Your Preferred Company is Not Regulated?

If you are set on choosing a particular lender but they are not regulated by the ERC, we strongly advise you to find a professional equity release adviser who is affiliated with the ERC and ask them to investigate your chosen company.

As we said earlier, not all equity release companies who are not regulated by the ERC are unreliable, so an adviser may tell you that you can release equity safely with your preferred lender.

However, you should check that the company has a complaints process, otherwise you may be stuck if you were unhappy with their services later down the line and had no way to resolve it.

What Happens If Your Equity Release Company Goes Bankrupt?

It is unlikely that your equity release company would go bankrupt. If this did occur, your plan would most likely be transferred to a different lender, and the regulations would be identical.

There would be zero changes to your loan amount, your interest, your type of plan, and the proposed process for closing the scheme i.e. selling the house.

You are less likely to be subject to your company going bankrupt if they are well-known and regulated, so again, we would advise finding an ERC member when you are looking for someone to purchase an equity release product from.

Speak to Equity Release Warehouse

If you are confused about which equity release companies are best, then speak to an equity release advisor, such as Equity Release Warehouse.

Our team of specialist’s advisers are on hand to provide you with the very best advice for you, your family and your personal circumstances.

Our team of specialist advisers will never put any pressure on you to make a decision and will only ever provide you with the best information and advice.

Our team will also lay out the advantages and disadvantages associated with equity release, so that you can make an informed and well-rounded decision.

We’ll even use our very own equity release calculator to help you to work out exactly how much equity you might be able to release from your home.

Start your equity release journey today by calling a member of the Equity Release Warehouse team on 0330 058 1579 or by visiting us online by searching for www.equityreleasewarehouse.com.

References

[1] https://nationaldebtline.org/get-information/guides/equity-release-ew/

[2] https://www.thetimes.com/money-mentor/mortgage-property/equity-release/best-equity-release-companies

[3] https://www.telegraph.co.uk/financial-services/retirement-solutions/equity-release-service/equity-release-interest-rates/