Compare Equity Release (Broker Exclusive Deals)

Equity release comparison is key to finding the right solution for your specific needs.
Later Life Finance compare the whole market to help simplify the process for you.

Equity release comparison is key to finding the right solution for your specific needs. Later Life Finance compare the whole market to help simplify the process for you.

Table of Contents

Equity Release Comparison With The Experts

image showing how to compare equity release

Author Paul Murphy
Later Life Finance

As a specialist equity release broker, Later Life Finance are well positioned to provide an expert insight into equity release comparison & source you the top deals. 

We compare the best equity release companies and the top lifetime mortgage providers to help you select the right option for your requirements. 

But how do you compare equity release options to get the right plan for your specific needs? 

We provide a professional comparison and overview of the options currently available to homeowners, with in depth, side by side equity release scheme reviews to find out who are the best equity release companies. 

Get your free comparison...

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top reasons for equity release companies & percentages infographic
Provider Interest Rate MER (Monthly) AER (Annual)
ABC Equity Release 3.25% 0.27% 3.32%
XYZ Equity Release 3.50% 0.30% 3.55%
Provider Interest Rate MER (Monthly) AER (Annual)
ABC Equity Release 3.25% 0.27% 3.32%
XYZ Equity Release 3.50% 0.30% 3.55%
Example Equity 3.75% 0.32% 3.81%
Equity Master 3.90% 0.35% 3.95%
Best Returns Equity 4.00% 0.38% 4.06%
Secure Future Equity 3.65% 0.28% 3.71%
Steady Growth Equity 3.80% 0.31% 3.86%
Reliable Investments 3.95% 0.34% 4.01%
Secure Horizon Equity 3.60% 0.25% 3.66%
Golden Years Release 4.10% 0.40% 4.16%
Provider Interest Rate MER (Monthly) AER (Annual)
ABC Equity Release 3.25% 0.27% 3.32%
XYZ Equity Release 3.50% 0.30% 3.55%

Comparing equity release companies: How to find the right solution

just compare equity release schemes on a smart phone comparison

In order to help you in comparing the top equity release deals, we compare & review each lender side-by-side to help you research your options. 

If you are considering how much can I borrow on a lifetime mortgage and who the best provider is, we assess factors such as equity release scheme flexibility, setup costs and exit fees for early repayment. 

By doing so, we aim to help you avoid any companies that do not offer the features you require and determine the best provider for your needs.

For homeowners wondering is a lifetime mortgage is a good idea and how to choose a lender, we provide a complete broker service to source the correct solution for your requirements. 

Ready to compare quotes? Book a free call back today to review your options

Compare equity release schemes​

  1. Canada Life

  2. Legal & General

  3. Aviva

  4. Nationwide

  5. Just

  6. LV=

  7. Pure Retirement

  8. Standard Life

  9. Crown Equity Release

  10.  Livemore

  11. More to Life

  12. Later Life Finance 

Canada Life Home Finance Compared

“We have 3.4 million customers, 470,000 pension annuities in force, and manage more than £42.2 billion of equities, fixed income and property”

Canada Life are an established equity release provider and offer flexible mortgages which allow you draw down money as and when you need it. 

They have a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest. Up to 10% of the sum borrowed can be repaid per year.

They also offer a feature called downsizing protection, which offers added flexibility for moving home and settling the plan early. 

They have fixed early repayment charges compared to many of the other lenders available.

Legal & General Home Finance Compared

“In June 1836, six lawyers founded Legal & General and our aim to build a better society has been present for as long as we have. 

Today we help over 10 million people with savings, retirement and life insurance”

Legal & General offer two Defaqto 4-star rated lifetime mortgages. They offer flexible mortgages that allow you draw down money as and when you need it.

They offer a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest. Up to 10% of the sum borrowed can be repaid per year.

They also offer a retirement interest only mortgage (RIO), which does not offer the same level of protection as a lifetime mortgage, as there is a risk of repossession if the monthly repayments were defaulted on.

Legal & General offer defined exit fees starting at 10% in year 1 which reduces by 1% each year.

Aviva Compared

“We’re a composite insurer made up of separate business areas, covering everything from pensions to pet insurance”

Aviva offers a choice of two Defaqto 4-star rated lifetime mortgages. 

They offer flexible mortgages that allow you draw down money as and when you need it. 

They have a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest, up to 10% of the sum borrowed can be repaid per year.

Aviva offer defined exit fees starting at 10% in year 1 which reduces by 1% each year.

Nationwide Compared

“We’re a building society, or mutual, owned by our members. That’s anyone who banks, saves or has a mortgage with us”.

Technically Nationwide aren’t a lifetime mortgage lender. They provide mortgages with fixed monthly payments for later life borrowers, including a retirement interest only mortgage. They do not offer a drawdown option.

Their plans differ from a lifetime mortgage as the Nationwide require sufficient income to service the interest payments. The plans are not protected by Equity release council codes of conduct.

Just (JRL Group) Compared

“JRL started out by specialising in guaranteed income for life solutions (provided by pension annuities) and lifetime mortgages”

Just offer a lifetime mortgage that lets you release a one off lump sum or an initial lump sum and extra cash when you need it. They have flexible mortgages that allow you draw down money as and when you need it. 

They offer a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest.  Just also offer a medically enhanced lifetime mortgage.

Liverpool Victoria Compared

“From humble beginnings we’ve been going strong since 1843!”

LV= offer flexible equity release plans that allow you draw down money as and when you need it. 

They offer a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest. Up to 10% of the sum borrowed can be repaid per year.

Liverpool Victoria have fixed early repayment charges compared to many of the other lenders available.

Pure Retirement Compared

“Established in 2014, Pure Retirement was the top of this year’s list of fastest growing businesses in Yorkshire”

Pure Retirement offer equity release plans and have flexible mortgages that allow you draw down money as and when you need it. 

They offer a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest. Up to 10% of the sum borrowed can be repaid per year.

Pure Retirement have several plans with varying levels of exit criteria for early repayment.

Standard Life Compared

Standard Life is “a brand that has been trusted to look after people’s life savings and retirement needs for nearly 200 years”.

Standard Life offers two Defaqto 5-star rated lifetime mortgages. These plans are not available across the whole marketplace. Select brokers can arrange their mortgages.

Later Life finance are able to arrange Standard Life plans.

They offer flexible mortgages that allow you draw down money as and when you need it, and a repayment option that lets you repay some or all of the monthly interest to reduce the effect of compound interest.

Up to 10% of the sum borrowed can be repaid per year.

Standard Life have defined exit fees starting at 8% in year 1 which reduces each year.

 

Crown Compared

“Crown Equity Release is an independent specialist arranger of capital, it has been assisting clients on how to get the most out of their retirement Since 2001”

Crown are an equity release home reversion plan specialist.

A home reversion plan involves selling a share of your property, as opposed to a mortgage where you retain full home ownership.

This arrangement is more permanent than a lifetime mortgage and are difficult to reverse once they are arranged.

More 2 Life Compared

More2life was founded, with big ambitions to change the equity release market by designing lifetime mortgages focussed on customers’ needs”

More 2 Life offer equity release plans include enhanced terms for certain medical issues, which could increase the level of lending available.

They offer flexible mortgages which allow you draw down money as and when you need it. 

They have a flexible repayment option which allows some or all of the monthly interest to be repaid to help reduce the effect of compound interest. 

Up to 10% of the sum borrowed can be repaid per year.

More 2 Life have several options with their early repayment charge criteria, most of which are fixed and defined.

Later Life Finance equity release comparison

Later Life Finance are technically a broker. We are passionate about providing expert equity release advice from the whole market on an independent basis. We have access to the best companies, plans and deals available and compare the whole market. 

Get in touch with our experts on 0800 2465228 for advice on all your options.

truths about comparing equity release providers image of homeowners comparing the myths and facts

Discovering which equity release company is best for your specific requirements is crucial to ensuring you find the right solution for your current and longer-term plans. 

Liverpool Victoria and Canada Life, for instance, offer ‘defined’ early repayment charge criteria for early settlement of the mortgage. 

Canada Life also provides ‘downsizing protection’ for moving home and settling the mortgage early. 

Other well-known names such as Standard Life and Legal & General offer plans with a wide range of features. 

The overall market is competitive, with lenders frequently vying for the most competitive interest rate position.

Some lenders, like More 2 Life, Aviva, and Just, provide medically enhanced lending plans with higher loan-to-value percentages of lending based on health conditions.

When selecting an equity release plan, consider plan features such as the applicable interest rate, any early repayment charges, lender fees, inheritance protection features, and downsizing protection.

Expert advice is important when considering equity release options as lenders have varying levels of plan options, features, and criteria.

The equity release industry is regulated by the Financial Conduct Authority for consumer protection. 

 It’s not a ‘one size fits all’ approach with equity release companies. 

Voluntary repayments & how to compare schemes

Voluntary repayments are a feature of all lifetime mortgages to make repayments toward the loan amount on a voluntary basis which can help you preserve more equity for inheritance or downsizing in the future, for example. 

Here’s how voluntary repayments work in equity release:

  1. Lifetime Mortgage Basis: Voluntary repayments are more commonly associated with lifetime mortgages, which are the most popular type of equity release product. With a lifetime mortgage, you borrow money secured against the value of your home, and the loan, including any interest accrued, is repaid when you pass away or move into long-term care.

  2. Interest Roll-Up: By default, with a lifetime mortgage, the interest on the loan is typically rolled up, which means it is added to the outstanding balance over time. This can lead to the debt growing substantially over the years and reducing inheritance for your beneficiaries. 

  3. Flexibility: Some equity release plans offer the flexibility for homeowners to make voluntary repayments, which can include both interest payments and capital repayments of up to 10% of the sum borrowed per year. These repayments are made on top of the regular interest accruing on the loan.

  4. Benefits of Voluntary Repayments:

    • Reducing the balance owed: Voluntary repayments allow homeowners to reduce the overall debt that accumulates over time. This can help preserve more of the home’s equity for inheritance.
    • Lower Interest Costs: By paying off some or all of the interest as it accrues, homeowners can prevent interest from compounding, leading to potentially lower overall costs.
    • Flexibility: Borrowers can decide when and how much to repay. This flexibility can suit different financial situations and goals

How Later Life Finance can help you compare the whole equity release market

At Later Life Finance, we have 15 years of mortgage expertise and compare equity release plans, analyse interest rate costs, plan exit criteria, and other factors to ensure we identify the most suitable solution for you. 

We have technical expertise in legal aspects, including property title splits, lease extensions, and trust cases. 

Get in touch with one of our equity release advisers today to discuss your requirements.

Equity release has evolved into a viable, mainstream later life mortgage product. 

With 40 thousand interest-only mortgages maturing per year over the coming decade*, a safe and flexible solution now exists for homeowners to remain in their homes if downsizing isn’t preferable, and to access tax-free equity for retirement, wealth distribution by gifting an early inheritance to family, for aspirational purposes, or simply to help homeowners meet the increasing costs of living.  

Get in touch with an equity release adviser to discuss your requirements today. 

*Source FCA interest only mortgage report

Equity release companies to avoid?

It is sensible to avoid equity release providers that aren’t members of the Equity Release Council. 

Dealing with a reputable Equity release council registered company and will ensure you access a reputable source for your requirements, as the council maintain several codes of conduct across the industry companies must follow for consumer protection. 

The Equity Release Council protects you from the possible risks of equity release, including a no negative equity guarantee.

Dealing with companies who are regulated by the Financial Conduct Authority will also ensure the advice provided is regulated. This is a standard requirement across the lifetime mortgage market as the products are fully regulated by the FCA. 

comparing equity release with calculators and paperwork

Comparing Equity Release Provider Arrangement Fees

When comparing companies, there are several fees to consider when releasing equity from your home. 

Your adviser will provide a detailed illustration and explain what fees apply, why, and how they are best paid to help minimise the interest costs on the mortgage. 

For example, you may prefer to pay the fees separately, as adding these to the mortgage can increase the level of interest repaid on the mortgage. 

  1. Application fees Comparison

Certain lifetime mortgages have application fees, which are normally around £500. 

If you add them to the loan, interest will be charged on them. Some lenders allow you to pay these separately. 

Mortgages with an application fee and lower interest rate may be more cost effective for people borrowing larger sums. For people borrowing smaller sums a ‘fee free’ plan with a higher rate may be more suitable. 

The difference in interest rates is normally around 0.25% between the fee paid and fee free options.

Some lenders charge a transfer fee of around £35 to send the money to your solicitor when the money is paid to you. 

  1. Early repayment charges Comparison

All equity release companies have early-repayment charges, although lenders have streamlined the  products over the past 10 years to add flexibility when repaying early. 

Many lenders have fixed early-repayment charges which reduce down to zero over 10-15 years.

Downsizing protection is a feature to protect you when moving home and repaying the mortgage early, and is worth considering if you plan to move home and settle.

Your adviser will provide a key facts illustration detailing the specific early repayment charges. 

  1. Redemption fee Comparison

This only applies when the mortgage is finally repaid when you die or move into long-term care (on the last survivor leaving the property in joint cases).

Some firms charge a redemption fee of around £200, whilst some don’t apply this fee at all.

  1. Adding or removing a name to the loan

If you divorce or remarried and add or remove someone to or from the equity release plan this would incur a legal fee.

Allowing around £700 plus VAT for this would be the typical cost in 2023.

  1. Valuation fee

Most equity release lenders do not charge any valuation fees when the plan is arranged. For further advances expect to pay a valuation fee if your home needs revaluing in the event of applying for more money. 

     6. Solicitors fee

You do need a solicitor if you are releasing money from your home. Your adviser can normally recommend an independent firm, or you can choose your own. Your solicitor ensures the Equity Release Council legal standards are met and receives your funds from the lender to pay into your bank account on completion.

Legal costs for equity release vary from £750 upwards depending on the firm. 

 

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Equity release FAQs

The main downside to equity release is the effect of compound interest on the most common type-the lifetime mortgage. However, this interest effect can be avoided or reduced with voluntary repayments. The equity release council included voluntary repayments as a requirement for lenders to meet their strict codes of conduct. The ability to make voluntary, penalty-free partial repayments was made a compulsory feature for all products to meet Equity Release Council standards from March 2022.
Prior to finalising your decision on equity release, it is crucial to seek financial guidance with a qualified equity release adviser. Discussing your plans with an independent equity release adviser will enable you to compare the whole market, and your adviser will identify the most suitable solution to match your specific circumstances. Additionally, should you opt to proceed with equity release, it is essential to obtain legal advice. Your adviser will be able to suggest an independent solicitor who specialises in equity release.
While Martin Lewis does not provide a direct endorsement for equity release, he acknowledges that under specific circumstances, it can be a viable solution to access funds tied up in your home to meet living costs and provide financial security. Where downsizing has been ruled out, for example, Martin Lewis has a balanced view on the concept of equity release and it's benefits to homeowners seeking extra funds in later life, and advises independent advice on equity release is obtained.
Equity release provides you with a cash lump sum or a drawdown facility to take the cash over a longer timeframe. The "catch" with equity release is that the money released from your home, plus interest will need to be repaid when the property is eventually sold. With a Lifetime Mortgage, you will owe the money borrowed plus the loan interest accrued. If you make voluntary repayments to the mortgage this will help reduce the amount of interest repayable on the mortgage, and will help maximise any inheritance your beneficiaries may receive.
It takes between six and eight weeks for an equity release application to complete and to receive your funds. The timescale depends on whether you have a mortgage to repay from the money taken, and whether there are any legal processes which may delay the process, such as moving home or changing the title.
A lasting power of attorney, or LPA is not required to setup an equity release plan. However, having an LPA in place is important to ensure access to further funds from a drawdown plan if you ever lose capacity to make your own decisions, or cannot sign your wishes for physical reasons, such as a stroke. If you have not set up an LPA and it is required, the Court will need to appoint a deputy for you. Planning ahead is prudent to ensure you have arranged such measures in case an LPA is required in the future, and this can save a great deal of stress if and when the time comes to use the LPA.
Equity release funds are tax-free and can be used for anything you wish (providing any existing mortgage is repaid from the funds). Popular uses of equity release funds include repaying mortgages and unsecured debt, home improvements, a cash boost, purchasing second homes, and helping family with a financial gift.
Lifetime mortgages are the most popular form of equity release and provide the flexibility to move home and make voluntary payments, if preferable. Equity release customers unlocked £1.6 billion in property wealth in Q2 of 2022. (Equity release council)
An equity release application should take around eight weeks until you receive your equity release funds. This depends on whether you have an existing mortgage to repay and if any changes to the title are required, which can increase the timescale to arrange.
In July 2023 the lowest Equity Release rate is currently 6.03% (Monthly Equivalent Rate) fixed for life. The highest interest rate in the market is currently 8.64% (Monthly Equivalent Rate).