What are the Best Lifetime Mortgage Providers in 2023?

The first question of anyone considering a lifetime mortgage to secure their financial future would be, “what are the best providers?”.

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The first question of anyone considering a lifetime mortgage to secure their financial future would be, “what are the best providers?”. The equity release market has become increasingly competitive, leaving many options without knowing what makes the best ones.

Breaking down the best lifetime mortgage providers is difficult, considering many offer products more tailored to specific borrowers’ needs. However, some bring a more well-rounded palette of plans to the table, thus being some of the more prominent lenders.

This guide will provide a rundown of some of the best lifetime mortgage providers in the UK. So let’s start with defining a lifetime mortgage to provide a base of what makes a provider good.

What is a Lifetime Mortgage?

When researching providers, you may already have a firm grasp on the concept of a lifetime mortgage. But let’s have a recap of the definition for the sake of clarity.

A lifetime mortgage is an equity release scheme that allows a borrower to unlock a tax-free lump sum of cash against your home. Interest rolls up on the borrowed amount, yet no repayments are necessary until you sell your property, usually after death or a move into long-term care.

There are many variations of plans on a lifetime mortgage offered by providers to stay competitive. However, most borrowers tend to opt for the standard lifetime mortgage plans that are the primary products of these equity release entities.

You can learn more about plans such as enhanced lifetime mortgages and drawdown schemes in the respective links. But many prospective borrowers considering a lifetime mortgage will ask what the best course of action is to get a tailor-made equity release plan.

How do you deduce what lifetime mortgage is best for you? We’ll look into some of the best lifetime mortgage providers by relaying what you need to know about these organisations.

What Do I Need to Know About Lifetime Mortgage Providers?

The primary piece of information that prospective borrowers should know about lifetime mortgage providers is that they don’t take affordability into account. That’s because you’ll make no repayments on your plan until your property sells.

The maximum amount of equity you can unlock heavily depends on your home’s value and age. We’d highlight that connecting with an equity release specialist is imperative to help discover the best deal. They will leverage your circumstances to ensure lifetime mortgage benefits you.

But here are the critical facts you should know about lifetime mortgage providers before moving forward.

  • The minimum age for most UK lifetime mortgages is 55 years old (some will be 60)
  • Many providers will have a maximum application age of between 80-95
  • All good providers have a no negative equity guarantee.
  • Plans offered will vary depending on needs and circumstances.
  • The best providers follow regulations from the Equity Release Council (ERC)
  • All providers require a professional valuation of your property
  • Most plans will allow you to unlock between 50%-55% of the value of your home.

Again, you must speak to an equity release specialist who will provide the best options, incorporating your needs and concerns into the plans.

How Do I Choose a Lifetime Mortgage Provider?

We compare plans from the leading equity release providers

There is no single best lifetime mortgage provider, as these entities will offer competitive plans where some will suit your requirements over others. However, the number of options available in the market means that choosing can be overwhelming.

Here are a few things to consider when choosing a lifetime mortgage provider:

  1. Interest rates: Compare the interest rates offered by different providers to see which one offers the best deal.
  2. Flexibility: Look for a provider that offers flexible repayment options and allows you to make overpayments or take payment breaks if needed.
  3. Reputation: Check the reputation of the provider by reading customer reviews and speaking with financial advisors or other professionals.
  4. Fees: Be sure to understand any fees associated with the mortgage, including arrangement fees, valuation fees, and early repayment charges.
  5. Financial stability: Choose a provider that is financially stable and has a good track record.
  6. Product features: Consider the features of the mortgage, such as the ability to release a lump sum or take regular payments, and choose a provider that offers the options that best meet your needs.
  7. Customer service: Look for a provider with good customer service and a commitment to helping you understand the terms and conditions of the mortgage.

That’s why equity release experts can help narrow down your options and may even present deals unavailable to the general public. They will also ensure that these providers follow Financial Conduct Authority (FCA) and Equity Release Council Regulations.

Please also note that making multiple mortgage applications can negatively impact your credit score.

So now you understand what prompts the best lifetime mortgages; who are they?

What are the Best Lifetime Mortgage Providers in the UK?

Find 10 of the best lifetime mortgage providers in 2022 below.

1. Aviva

Aviva is one of the largest insurance companies in the UK, offering a broad range of equity release products. Their experience in the market makes their plans some of the most robust, well-rounded options, bringing smaller sum choices or flexible schemes to the table.

The provider has won numerous awards for its services, being weighed up by experts as one of the leading mortgage providers in the nation. However, direct customer reviews have noted both positive and negative feedback.

Key benefits of Aviva include partial repayment options, inheritance, and downsizing protection.

2. Canada Life

Canada Life has an extensive portfolio of products available in the retirement and investment sectors. Its status as a leading financier doesn’t go unnoticed, with a professional rating of AA for Financial Strength, and it doesn’t fall short of lifetime mortgage options.

Their plans are flexible with a user-friendly approach to customer support, winning significant awards for their efforts. However, it should get noted that online reviews have been more on the negative side than the positive.

One plus of Canada Life is its interest-only lifetime mortgage options allowing borrowers to repay between 50%-100% of the compounding interest monthly.

3. More 2 Life

More 2 Life began as a specialist in financing for those later in life, giving the provider a degree of expertise over lifetime mortgage lending. They have one of the largest libraries of plans available, with some schemes offering up to £1.85 million in LTV on your property.

The provider is a bit more customer-centric than other options, with valuable calculators and tools that help prospective borrowers understand their lifetime mortgage. That dedicated and more intuitive approach has reverence from most customers, where you’ll find that feedback is quite positive.

More 2 Life lifetime mortgages incorporate various features such as Repayment Charge Exemption, Partial Repayments, Inheritance Protection, and cashback.

4. Pure Retirement

Pure Retirement prides itself on addressing the needs of those older, offering a quicker, more streamlined way to unlock equity and get the cash they need. The award-winning service ditches the jargon and complex processes in favour of something much more accessible for retired persons.

The plans are only available to those over 60, and there aren’t many available. However, the provider’s simplicity helps applications get approved usually within eight weeks. Pure Retirement is one of the faster routes if you need cash quickly.

The bonuses on top of the speed are that Pure Retirement plans often have higher LTVs on properties and cash facility options.

5. Liverpool Victoria (LV)

LV is one of the UK’s longest-running providers with a 175-year history rendering financial services. That experience has served the company well in understanding its market and the ability to form suited, accessible plans for a range of lifetime mortgage needs.

The lifetime mortgage products have flexibility, customizability, and an extensive range of add-on services to meet the borrower’s concerns. Even though there are many options on the table, LV gets praise for being straightforward, concise, and well-supported.

You’ll need to be at least 60 years old to apply for an LV lifetime mortgage, but it will cover all your demands for the plan.

6. Legal & General (L&G)

You will likely have heard of Legal & General as one of the largest asset management entities in the UK and Europe. As a well-known insurance provider, L&G provides various lifetime mortgage plans with bells and whistles that suit the prospective borrower.

The provider is one of the best, with plenty of lifetime mortgage options available, starting at 55 with those that own properties valued at £100,000 or more. Inheritance protection and cashback are available on most plans, making them more attractive for borrowers.

However, L&G’s customer feedback veers towards the negative side, highlighting their lack of personal touch with the client.

7. Just

‘Just’ is another provider geared towards clientele heading towards retirement or already in that phase of their lives. Their information about their various plans and services is accessible and easy to read, with some intuitive calculators supplementing their offerings.

The provider’s core products are lump sum, interest-only, and home reversion lifetime mortgages, with other support services available if necessary. But despite the more focused approach of ‘Just’, user reviews are more on the negative side, citing customer service is lacking.

Though ‘Just’ plans are easier to access and understand than other UK providers, they are one of the better providers.

8. OneFamily

OneFamily is a lifetime mortgage provider that stands out as an organisation owned and run for the benefit of its members. Many equity release schemes and insurance plans are available, including over 50s life cover, lifetime ISAs, and more.

Many of their plans have five-star ratings from the professional trust platform Defaqto, winning awards and accolades from prominent industry bodies. Their straightforwardness and simplicity in the process drive the lifetime mortgage products as some of the more preferred plans, seeing good customer feedback.

One standout feature of OneFamily is that their in-house equity release advice comes for a fixed fee rather than a percentage of the loan. That notion gives a more cost-effective approach to lifetime mortgages.

9. Hodge Lifetime

Hodge is another provider experienced in the equity release trade, serving as one of the longest-running entities in the UK. They offer various lifetime mortgages with significant flexibility, including drawdowns and home reversion schemes.

Their experience shows with their services decorated with industry awards. Not to mention, Hodge offers a very well-designed website that lists the pros and cons of each service, where customers enjoy breathing space to choose plans that are right for them.

Hodge may suit your needs if customers prefer a more transparent and concise approach to their lifetime mortgage plans.

10. Nationwide

Nationwide is a leading bank and financial institution throughout the United Kingdom. However, they are also a well-known provider of lifetime mortgages.

Their range of financial products makes them experienced, flexible, and receptive to the different needs of those considering a lifetime mortgage. The other positives of this provider include the complementary bonuses such as Savings and ISAs.

However, Nationwide’s services generally see poor customer reviews, mainly because information about products is lacklustre, and there are no supporting tools.

As we’ve mentioned a few times in this article, speaking to an equity release specialist is the best action to ensure you get the best plan. The ‘leading’ providers above may not suit what you seek in a lifetime mortgage, where an expert could weigh up options and identify more suitable choices.

So how does one go about applying for a lifetime mortgage?

How Do I Apply for a Lifetime Mortgage?

Many lifetime mortgage providers will tempt you with their attractive product offers. They will try to get you to apply on the spot with what would seemingly be an easy process. However, as enticing as the equity release offer, the plan might not be the best option if you’re serious about unlocking home equity.

This form of lending generally is not the most straightforward process, and the input of a specialist is nearly essential to ensure you don’t commit to a poorly tailored plan. A whole market service that connects you to a knowledgeable broker is the best way to start the process.

Engaging with a broker will yield better results, a more straightforward process, and give you a resource to answer any queries. This platform is a concise way to connect to a specialist within a short time of providing information about your circumstances.

They will also ensure that the providers they suggest follow guidance and regulations from the FCA and ERC.

So finally, let’s go over why a specialist is necessary to the process.

Should I Speak to an Equity Release Specialist Before Applying?

The equity release market is becoming increasingly vast, with dedicated providers and versatile financial institutions offering lifetime mortgage products. Even well-known UK banks will have some plans available, making it hard to decide which is the best scheme considering the options.

Connecting with an equity release expert streamlines the process. It helps the prospective borrower make sense of their options, such as how much they can borrow and consider any future possibilities.

This platform will quickly connect you to a well-suited broker and work for you to find the best lifetime mortgage.