Share
Comparing equity release providers isn’t just about finding the lowest interest rate. The right provider and plan for you will depend on the options they offer, the features you may need, the total cost over time, and the standards and protections in place.
A practical way to compare equity release providers is to:
- First research the different types of equity release product: Lifetime Mortgages and home reversion plans.
- Use an equity release calculator to see how much you could release.
- Speak with a qualified adviser to compare a range of available products.
- Review key features such as interest rates, fees, flexibility and protections.
- Ask for a personalised illustration to compare options properly.
Important: Equity release is a long-term financial commitment, so personalised advice and tailored illustrations are essential when comparing options.
A Lifetime Mortgage is the most common type of equity release and is a loan secured against your home. Releasing equity from your home will reduce the value of your estate and may affect your entitlement to means-tested benefits.
What is equity release?
Equity release is a later life financial product for UK homeowners aged 55 or over. There are two main types: Lifetime Mortgages and home reversion plans.
- Lifetime Mortgage: lets you borrow money against the value of your home while retaining ownership.
- Home reversion plan: involves selling part (or all) of your home to a provider in exchange for money, while continuing to live there.
If you’re new to the topic, you can read more about how equity release works.
What is an equity release provider?
An equity release provider or lender is the company that offers and funds an equity release product, such as a Lifetime Mortgage or a home reversion plan.
In the UK, most equity release products available today are Lifetime Mortgages provided by specialist later‑life lenders, although some insurers also operate in this market. Equity release providers set the product terms, including interest rates, fees and features, but do not give personalised advice.
Equity release providers vs advisers: what’s the difference?
Understanding the difference can help you compare your options more effectively:
- Equity release providers are the companies that offer and fund Lifetime Mortgages or home reversion plans. You can’t approach them directly to enquire about products, instead you must speak to an adviser.
- Equity release advisers help you compare products, explain the risks and benefits, and recommend a suitable option based on your needs and circumstances.
Speaking with an equity release adviser is a key part of the process and it isn’t possible to take out an equity release product without doing so.
Why it’s important to compare providers?
It’s important to compare equity release providers because the long‑term cost and flexibility of equity release can vary significantly between providers, even where products appear similar at first glance.
Different providers may offer different interest rates, fee structures, repayment options and early repayment charges. These differences affect how much interest builds up over time and how easily you can make repayments later. As a result, focusing on a single feature, such as the headline interest rate, can give a misleading picture of the overall cost and suitability of a plan.
Comparing providers with expert advice and personalised illustrations helps you understand how different products may work over the long term, allowing you to weigh up cost, flexibility and protections side by side.
Is there a “best” equity release provider?
There is no single “best” equity release provider. The right choice depends on your age, property value, health, future plans and whether you want flexibility, lower interest, or features like inheritance protection. This is why personalised advice and tailored illustrations are essential when making comparisons.
This matters because two plans that look similar on the surface (for example, similar interest rates) can differ significantly in fees, available features and early repayment charges.
Key factors to compare equity release providers
While these factors apply most commonly to Lifetime Mortgages, they provide a useful framework when comparing equity release providers more broadly.
1. Equity Release Council membership
The Equity Release Council is the UK industry trade body. Being a member means the provider has committed to a set of consumer protection standards to help keep you safe.
This helps ensure the products meet important standards, including:
- No negative equity guarantee – provided the secured property is sold for the best price reasonably obtainable and the terms and conditions of the loan have been met, the borrower or estate will never owe more than the property is worth, after deduction of reasonable sales costs.
- Home for life – you can remain in your home for life (or until you need long-term care), provided you meet the terms of the plan.
- Ability to make repayments – you'll be guaranteed the right to make payments, subject to lender criteria.
For many homeowners, choosing a provider aligned to these standards offers added reassurance that they are dealing with a reputable and regulated organisation. Prioritising providers who are members of the Equity Release Council can help you avoid unnecessary risks and ensure your long-term security.
Having these common standards as a baseline can also make it easier to compare providers on a like-for-like basis.
2. Interest rates
There are 2 types of interest rates you will be offered:
- Fixed-for-life interest rates – they will not change for the life of the loan.
- Or variable rates with a fixed upper limit – where the rate will not go above a defined limit.
Don’t judge solely on the lowest available rate – compare how the full plan is likely to work for you over time, including the available features and charges.
Your adviser can help you understand what rate you may be offered and what it could mean for the amount owed over time. This is where a personalised illustration is especially useful.
3. Product features and flexibility
Compare the product features from each equity release provider to ensure they support your long-term goals. Things to consider include:
- How you can access funds: for example, taking the money as a lump sum or in stages.
- Repayment flexibility: what format optional payments can take and when early repayment charges start to apply.
- Early repayment charges: what happens if your plans change and you want to repay early.
- Options that support your goals: for example, features that may help manage long-term costs or protect outcomes for your beneficiaries.
- Portability: if your provider is a member of the Equity Release Council, you will have the option to move home and take your equity release product with you. This is subject to the provider’s criteria.
Even when two providers can offer the same interest rate, the available product features may make a meaningful difference to your decision and the long-term outcomes.
4. Fees and the total cost over time
Look beyond the upfront costs and understand the total cost of the plan. Costs to consider include:
- Arrangement fees
- Valuation fees
- Legal costs
- Advice fees (paid to your adviser, not the provider)
- And any potential early repayment charges.
Because equity release is typically a long-term arrangement, it’s helpful to compare options using illustrations that show the impact over time and not just the initial price.
5. Reputation, service and long-term support
Equity release is a long-term solution. It is important you find a provider you can trust, therefore compare:
- Customer reviews and independent feedback
- How easy it is to get help when needed
- Your advisers experience in dealing with different providers
- And their complaints history.
Common mistakes to avoid when comparing providers
Avoid these potential mistakes when comparing equity release providers:
- Choosing based only on the interest rate – The lowest rate does not always result in the lowest overall cost. Fees, repayment options and how interest builds up over time can make a significant difference.
- Ignoring early repayment charges – Early repayment charges vary between providers and can apply for many years. Not understanding these charges can limit your flexibility if your circumstances change.
- Rushing the decision – Equity release is a long‑term commitment. Making a quick decision without comparing options properly can result in higher costs or fewer features than you need.
- Not seeking whole‑of‑market advice – Getting advice that is whole of market can give you access to a broad range of equity release products.
- Overlooking Equity Release Council members – Not checking whether a provider is a member of the Equity Release Council may mean missing out on important protections, such as the no negative equity guarantee.
Why whole-of-market advice matters
Speaking with an adviser is essential, so it’s worth prioritising one who looks across the whole market. This can help to give you a broad comparison across a wide range of products and providers.
Whole-of-market advice can help you:
- Compare providers more fairly
- Understand the trade-offs, like interest rate vs flexibility vs charges
- Narrow down options based on your goals and future plans.
Equity release provider comparison checklist
Use this checklist when comparing equity release providers with your adviser:
| Comparison criteria | What to check with an adviser |
|---|---|
| Equity Release Council membership | Confirm the provider is a member of the Equity Release Council and follows its standards. You can check membership at equityreleasecouncil.com/members-directory. |
| Interest rate type | Check whether the interest rate is fixed-for-life or variable with a cap. Request a Key Facts Illustration (KFI) and compare the total amount owed at 10, 15 and 20 years to help understand the cost. |
| Flexible repayment features | Check whether the plan allows optional payments, including partial repayments or interest payments. Also check if there are fixed early repayment charges or ones that are variable. |
| Total fees and charges | Make sure all costs are clearly explained, including arrangement fees, valuation fees, legal costs and advice fees. |
| Personal illustration provided | Ensure you have received a personalised Key Facts Illustration showing how the loan and interest could grow over time based on your circumstances. |
| Service reputation and long‑term support | Look for evidence of good customer service, long‑term support and clear communication, including reviews, awards or independent feedback where available. |
Next steps: start your comparison
Before speaking with an adviser, many people find it helpful to get an initial estimate of what may be available to them.
You can use the equity release calculator to check eligibility and see how much you could potentially borrow.
If you don’t already have an adviser, we can help you find one through Royal London Equity Release Advisers. So, you can compare options across the whole market and understand what’s most suitable for your needs.
Royal London has chosen to introduce its customers to the experts at Royal London Equity Release Advisers. They will provide advice on equity release products from across the whole market and will make a recommendation to you based on your personal circumstances.
You will not receive advice or any recommendation from Royal London. The information on this page has been provided by Royal London Equity Release Advisers to help you understand more about releasing equity.
FAQs
Can I switch equity release providers?
It may be possible to switch to a different equity release provider for Lifetime Mortgages, but this is not always suitable or cost‑effective. Switching typically involves repaying your existing plan and taking out a new one, which may trigger early repayment charges and new fees.
Whether switching is possible or appropriate depends on factors such as your current plan terms, how long you’ve had it, and whether newer products offer meaningful improvements. A qualified adviser can help assess whether switching is likely to be beneficial.
Are all equity release providers regulated?
Yes. All equity release providers in the UK must be authorised and regulated by the Financial Conduct Authority (FCA). Many providers are also members of the Equity Release Council, which requires them to meet additional product standards and consumer protections.
Checking that a provider is regulated and whether it follows Equity Release Council standards can help provide reassurance when comparing options.
Why is it important to compare equity release providers?
It’s important to compare equity release providers because it can materially affect how much money you get, how fast the debt may grow if you use a Lifetime Mortgage, and what you (or your family) is left with later when the money is repaid.
Differences in interest rates, fees, repayment options and early repayment charges can affect how much the plan costs you over time. Comparing providers using personalised illustrations helps you understand these differences more clearly.
Do you need to have an adviser for equity release?
Yes. Equity release products must be arranged through a qualified adviser. You cannot take out an equity release plan without receiving advice.
An equity release adviser explains how different products work, compares options across the market, and recommends a suitable plan based on your circumstances. This advice process is a required part of taking out equity release and helps ensure you understand the risks and long‑term implications.
More on equity release
“Royal London Equity Release Advisers” is a trading name of Responsible Life Limited. Responsible Life Limited uses Royal London branding under licence from Royal London Marketing Limited. “Royal London”, the “Royal London logo” and “Royal London Equity Release” are registered trade marks of The Royal London Mutual Insurance Society Limited. Royal London Marketing Limited and The Royal London Mutual Insurance Society Limited do not provide regulated mortgage advice.
Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 610205. Registered in England and Wales under company number 07162252. Registered office: Princess Court, 23 Princess Street, Plymouth PL1 2EX.
Responsible Life Limited is a wholly owned subsidiary of the Royal London Group who may benefit if you choose to take regulated mortgage advice. Being a wholly owned subsidiary of the Royal London Group does not alter Responsible Life Limited’s regulatory responsibilities.
If you choose a mortgage with required payments during your lifetime then your home may be repossessed if you do not keep up with the payments. Borrowing with a Lifetime Mortgage or Retirement Interest-Only Mortgage will reduce the value of your estate. Receiving a cash lump sum may also affect your entitlement to means-tested benefits. Think carefully before securing other debts against your home.
To understand the features and risks, ask for a personalised illustration. Your adviser will talk through the setting up costs of a mortgage. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,690.