How to compare equity release plans and providers

Ready to compare equity release schemes?

There’s plenty of choice when it comes to equity release providers and plans. That’s why it’s important to understand the main differences between them as part of your search.

To help you, we’ve put together this guide to the main types of plan and product options. It also includes a comparison of what’s available from some of the biggest names in equity release.

We cover the following important points to consider when comparing plans and providers:

• What is equity release?
• What’s the difference between a lifetime mortgage and home reversion?
• What different types of lifetime mortgage are available?
• Does every lifetime mortgage provider offer every type of plan?
• Compare equity release plans from the leading providers.
• Compare equity release providers: comparison table.
• How to get specialist help to compare equity release schemes.

We hope this article helps you compare equity release schemes and providers. We would be happy of course to connect you with one of our selected advisers for further help and information – and personalised quotes from leading providers. 

Call us on 0808 178 3055  or request a call back and we will arrange an appointment at a time that suits you. Alternatively, check your eligibility and get an initial indication of how much tax-free cash you could unlock from your home.

What is equity release?

Equity release is a way for homeowners aged 55+ to free up some of the money from their home’s value without having to sell, move or make any mandatory monthly repayments.

You can spend the money however you wish, after using some of the cash to pay off any outstanding mortgage. When you pass away or move into long-term care, your home is sold to repay the equity release provider.

What’s the difference between a lifetime mortgage and home reversion?

There are two types of equity release currently available to UK homeowners. A lifetime mortgage is the most common type, with home reversion available as an alternative.

Lifetime mortgage

A lifetime mortgage is a loan secured against your property and is typically available to people aged 55 or over. It’s similar to a regular mortgage in that you retain full ownership of your property, but you don’t need to make regular repayments. Instead, the house is sold to repay the loan and any accrued interest after you move into long-term care or pass away.

Lenders charge interest on a lifetime mortgage and it accrues over time on a compound interest basis. This means that the lender charges interest on the loan itself, and on the interest already applied. However, some providers let you make voluntary interest payments each month to reduce or even prevent interest from building up (see below for more details).

Home reversion

Home reversion is where you sell your home or a percentage of it and is typically available to homeowners aged 60+. After taking out a plan, you have the right to remain in your home as a tenant, without any rent to pay. The provider is paid back via the sale of your home when you move into long-term care or pass away.

You don’t pay any interest with home reversion. However, to reflect the risk that the provider is taking on, they will offer you much less than the current market value of your home. 

Which is right for you?

It is vital that you get professional advice when considering equity release. This is the best way to ensure that you make the right decision about whether it’s right for you, and if so which type of plan is most suitable. Our selected advisers can help you compare equity release plans, providing you with competitive quotes from leading providers. Call us on 0808 178 3055 or request a call back to talk to an adviser.

What different types of lifetime mortgage are available?

A number of types of lifetime mortgage are available. For example, you have the option of a lump sum plan where you take all your money in one go, or a drawdown plan where you take an initial lump sum followed by further releases over time.

Another type is an interest-only lifetime mortgage where you pay some or all of the interest each month to reduce or prevent interest from building up. This is a way to protect more of your loved ones’ inheritance, if that’s important to you.

Do you have a current medical condition or a history of medical issues? Or perhaps your lifestyle includes smoking or drinking? If so, you might be eligible for an enhanced lifetime mortgage that could let you release additional cash or benefit from a lower interest rate.

As well as a choice of plans, you can also choose from some important options that lifetime mortgage providers might offer. For example, some will let you pay back a percentage of the loan each year without incurring early repayment charges.

Does every lifetime mortgage provider offer every type of plan?

In short, no. Each provider makes their own decisions about the type of plans and flexible options they want to offer. Let’s take interest-only plans as an example. Some providers will offer interest-only options across its range of lifetime mortgages, some will have a narrow choice of interest-only plans, and others won’t offer this option at all.

There is therefore a danger in trying to choose a plan before you compare equity release schemes from leading providers. What’s more, shopping around to get the best deal could save you or your loved ones thousands of pounds over the life of your plan.

Compare equity release plans from the leading providers

To help you compare equity release providers and plans, we’ve put together this summary of the main similarities and differences between some of the leading lifetime mortgage providers. You’ll also find links to our more detailed profiles of each provider.

It’s reassuring to know that all these providers are authorised and regulated by the Financial Conduct Authority. Also, as members of the Equity Release Council, they sign up to standards and rules that protect consumers from the ‘equity release horror stories’ of 30+ years ago.   

AVIVA

The company: Aviva is a trusted name in UK financial services, firmly established as an equity release provider. The company’s awards for its lifetime mortgage products include ‘Best Provider for Products’ at the Mortgage Solutions Equity Release Awards 2023. 

Lump sum plans: Aviva DOES offer lump sum lifetime mortgage plans.

Drawdown plans: Aviva DOES offer drawdown plans.

Interest-only plans: Aviva DOES NOT offer an interest-only lifetime mortgage.

Enhanced plans: Aviva DOES offer enhanced versions of both its lump sum and drawdown plans.

Early repayment: Aviva DOES offer the option of making voluntary partial repayments, with no early repayment charges up to a maximum annual repayment of 10%.

Read more about Aviva equity release

Legal & General

The company: Legal & General was established in 1836 and is a leading financial services group providing a number of retirement solutions including equity release and pensions. 

Lump sum plans: Legal & General DOES offer lump sum lifetime mortgage plans. 

Drawdown plans: Legal & General DOES offer drawdown plans.

Interest-only plans: Legal & General DOES offer an interest-only lifetime mortgage.

Enhanced plans: Legal & General DOES NOT offer enhanced lifetime mortgage plans.

Options: L&G offers the option of making voluntary partial repayments, with no early repayment charges up to a maximum annual repayment of 10%.

Read more about Legal & General equity release

LV=

The company: Previously known as Liverpool Victoria, LV= has a history dating back to 1843 and has been offering equity release since 2002. 

Lump sum plans: LV= DOES offer lump sum lifetime mortgage plans. 

Drawdown plans: LV= DOES offer drawdown plans.

Interest-only plans: LV= DOES NOT offer an interest-only lifetime mortgage.

Enhanced plans: LV= DOES NOT offer enhanced lifetime mortgage plans.

Options: LV= DOES offer the option of making voluntary partial repayments, with no early repayment charges up to a maximum annual repayment of 10%.

Read more about LV= equity release

More2Life

The company: More2Life has always specialised in later life lending since it formed in 2008 and now offers a range of lifetime mortgage products. 

Lump sum plans: More2Life DOES offer lump sum lifetime mortgage plans. 

Drawdown plans:  More2Life DOES offer drawdown plans.

Interest-only plans: More2Life DOES NOT offer an interest-only lifetime mortgage.

Enhanced plans: More2Life DOES offer enhanced lifetime mortgage plans.

Options: More2Life DOES offer the option of making voluntary partial repayments, with no early repayment charges up to a maximum annual repayment of 10% (12% on its ‘Maximum’ plan).

Read more about More2Life equity release

Just

The company: Just is one of the UK’s leading specialist providers of retirement solutions. The many awards they’ve received include Company of the Year and a five star award in the mortgage category in the Financial Adviser Service Awards 2021.

Lump sum plans: Just DOES offer lump sum lifetime mortgage plans. 

Drawdown plans: Just DOES offer drawdown plans.

Interest-only plans: Just DOES offer an interest-only lifetime mortgage.

Enhanced plans: Just DOES offer enhanced lifetime mortgage plans.

Early repayment: Just DOES offer the option of making voluntary partial repayments, with no early repayment charges up to a maximum annual repayment of 10%. 

Read more about Just equity release

Pure Retirement

The company: Pure Retirement are equity release specialists and have won multiple awards including ‘Best Provider for Service’ at the Mortgage Solutions Equity Release Awards 2023. 

Lump sum plans: Pure retirement DOES offer lump sum lifetime mortgage plans. 

Drawdown plans: Pure Retirement DOES offer drawdown plans.

Interest-only plans: Pure Retirement DOES NOT offer an interest-only lifetime mortgage.

Enhanced plans: Pure Retirement DOES NOT offer enhanced lifetime mortgage plans.

Early repayment: Pure Retirement DOES offer the option of making voluntary partial repayments. These can be up to 10-12% of the loan annually with no early repayment charges, depending on the product. 

Read more about Pure Retirement equity release

Canada Life 

The company: Established in the UK in 1903, Canada Life is now a household name with over 3.5 million customers. Canada Life is part of the Great-West Lifeco Inc – one of the largest Canadian life and health insurance companies.

Lump sum plans: Canada Life DOES offer lump sum lifetime mortgage plans. 

Drawdown plans: Canada Life DOES offer drawdown plans.

Interest-only plans: Canada Life DOES offer an interest-only lifetime mortgage.

Enhanced plans: Canada Life DOES NOT offer enhanced lifetime mortgage plans.

Early repayment: Canada Life DOES offer the option of making voluntary partial repayments of up to 10% of the loan annually with no early repayment charge.

Read more about Canada Life equity release

Compare equity release providers: comparison table

Note: Information based on our current understanding of the equity release market. Please contact us if you wish to talk to one of our selected advisers for more information on what’s available from providers.

How to get specialist help to compare equity release schemes

If you want to compare equity release plans available to you, we can help. Call us on 0808 178 3055  or request a call back and we will arrange an appointment with one of our selected equity release advisers They can advise on which equity release companies and plans are best suited to your individual circumstances and needs. 

For peace of mind, any initial advice or information you receive from our selected advisers is completely free and without obligation. You will only pay them a fee if you apply for a plan and your case completes. You can pay this fee from the money you unlock, so you do not have to worry about finding it during the application process.