7 of the best equity release providers (and rates) in the UK
If you want to unlock some of the value in your home without selling up and moving, then equity release could be an option. We look at the best providers and their interest rates.
An increasing number of homeowners aged over 55 are considering equity release to access a large lump sum, top up their pension, or even fund renovations for their home.
But what is equity release, and who are the best providers currently?
Lifetime mortgages are the most popular form of equity release, but you can also use home reversion schemes.
Interest rates on equity release vary between providers.
Interest rolls up on lifetime mortgages, meaning the longer you live, the more they cost.
It’s important to get professional advice before you agree to equity release.
What is equity release?
The value of your home that you own, known as equity, is determined by subtracting any outstanding mortgage balance from the total market value. Essentially, it represents the amount you would receive if you sold your home outright.
But what if you want to keep your home and tap into your equity?
Fortunately, if you have paid off all or a significant portion, or the entire mortgage, you can explore an equity release plan.
This lets you unlock some of the equity that has built up in your home, without losing the right to carry on living there.
This can be particularly beneficial when facing significant expenses later in life, such as long-term care.
Obtaining equity release to pay for care involves approaching your provider and applying.
Your application will be reviewed, your home value will be considered, and once approved, you can pay the necessary fees and access your equity.
The money will be deposited into your account, and you can make payments to your care provider.
If you don’t use all the money, it should stay in your account until further notice, but this depends on the nature of your mortgage arrangement.
You might also use equity release if you have retired and are finding that your pension isn’t stretching as far as you had hoped.
What are the different types of equity release?
There are two types of types of equity release are lifetime mortgages and home reversion.
Lifetime mortgage
This is the most popular type of equity release.
You borrow a lump sum in the form of a mortgage; however, unlike conventional home loans, you don’t need to make monthly repayments. The loan, plus interest, is only repaid from the sale of your home when you die or move into long-term care.
Interest builds up over time - so the longer you live, the more interest you will pay on the loan.
No negative equity guarantees ensure your total repayment doesn’t exceed the value of your property.
The amount you can borrow is usually between 18% and 50% of the property’s total value – typically, the older you are, the more you can release.
Home reversion
With a home reversion scheme, you sell all or part of your property but with a legal right to continue living in it until you die or move into long-term care.
You can choose to receive the money as a lump sum or as a regular income.
Although this can appear simpler than a lifetime mortgage, you won’t get the full market rate for the part of your property you sell. Nor will you benefit from future house price growth.
Home reversion schemes are increasingly rare, and they are not offered by many providers.
Which equity release companies are the best?
In this article, we’ll reveal some of the best equity release companies, all of which are regulated by the Financial Conduct Authority (FCA) and are members of the Equity Release Council (ERC).
Equity release isn’t the right option for everyone, so it’s worth doing your research. It is also a requirement of the FCA that you take professional advice first.
Now, we’ll run through some of the leading equity release providers in the UK.
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Aviva is the UK’s largest insurance company and has won several awards for their equity release service.
Its minimum loan is £15,000, and you must be either be mortgage-free or have a small mortgage on your property.
Aviva only offers lifetime mortgages; it doesn’t sell home reversion schemes.
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Canada Life specialises in retirement, investments, and protection products.
It offers lifetime mortgages that allow you to repay up to 10% of the loan each year to keep costs down.
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Just offers a large range of financial products for retirement, including an equity release mortgage.
Some mortgages have fixed monthly interest, which is agreed at the start of your plan. Paying interest monthly can help you keep costs down.
Just also uses medical underwriting. This means you may be able to borrow more or get a better interest rate.
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Legal & General offers various equity release mortgages.
You can take a cash lump sum and pay interest as it accrues or let the interest roll up.
Alternatively, you can opt for a payment term lifetime mortgage if you’re over 50.
This works like an interest-only mortgage up to age 75. After age 75, there are no longer interest payments. Interest is added to the loan balance and repaid when you die or move into long-term care.
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Not only does LV= offer car insurance, but it also provides many investment and retirement services.
Its lifetime mortgage includes two options: taking a single lump sum or drawing down the cash gradually as income. They can also be used on second or holiday homes.
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More2Life has a range of equity release plans with ‘enhanced’ options.
These are designed to take your medical history and current health into account, which may give you lower interest rates and higher borrowing limits.
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Sunlife offers many equity release services, as well as support and advice, to people over 50.
It also offers 10% repayments each year and downsizing protection.
The best equity release interest rates
We’ll now reveal some of the best equity release rates for lifetime mortgages, according to Simply Equity Release.
These equity release rates are correct as of October 2025 and may have changed, but they give an idea of what rates to expect.
| Product | Provider | Monthly equivalent rate (MER) |
|---|---|---|
| Lifetime mortgage (drawdown) | Aviva | 6.73% |
| Lifetime mortgage (lump sum) | Aviva | 6.73% |
| Lifetime mortgage (drawdown) | Pure Retirement | 6.51% |
| Lifetime mortgage (lump sum) | Pure Retirement | 6.51% |
| Lifetime mortgage (drawdown) | Just Retirement | 6.5% |
| Lifetime mortgage (lump sum) | Just Retirement | 6.5% |
| Lifetime mortgage (drawdown) | Canada Life | 7.01% |
| Lifetime mortgage (lump sum) | Just Retirement | 7.01% |
How do equity release rates work?
There is no standard equity release interest rate, as the interest rate you receive depends on your circumstances.
Factors taken into consideration by lenders may include:
Your age
The value of your home
Your health and lifestyle
How much equity you would like to release
As you do not need to make any monthly payments on a lifetime mortgage, the interest on your loan compounds - or rolls up - as time goes by.
This means that the total amount repayable can grow substantially throughout the loan period.
This is one way a lifetime mortgage differs from a regular mortgage, which entails monthly repayments.
Most equity release providers add compound interest to your balance every year.
You may have the option to settle your loan and interest before the end of your loan term. However, you may have to pay substantial early repayment charges, depending on your provider’s limits.
Some providers let you pay up to 10% off each year.
How much does it cost to pay off equity release early?
Early repayment charges can vary depending on the lender's approach. Some lenders employ a fixed-rate method, establishing the charge upfront.
Others are more flexible, allowing you to repay a set percentage annually without fees or adopting a variable rate tied to gilt yields.
In some cases, equity release repayment charges can be as much as 25% of the outstanding loan.
This means it's essential to find out how much you are likely to pay if you decide to repay your loan early.
How long does the equity release process take?
The equity release process will typically take about eight weeks from start to finish, though it may be longer or shorter, depending on your circumstances.
What are the benefits of equity release?
The benefit of home equity release is that it provides access to capital now rather than keeping it inaccessible within your home.
The rise in UK house prices over the last few decades has resulted in a substantial portion of homeowners' net worth being tied up in their homes.
If your home has increased in value over time, home equity release enables you to tap into some of that accrued value to supplement your retirement income.
What you need to consider with equity release
It’s vital that the equity release provider you choose is a member of the ERC. This will ensure that you are protected with capped interest rates for lifetime mortgages.
As with any major financial decision, getting independent financial advice is a good idea.
A financial adviser can look at your circumstances and financial goals to recommend the best action or financial products for your needs.
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