Best Equity Release Companies

Best Equity Release Companies

Amongst the equity release plans, a lifetime mortgage stands out to be a much more popular method of equity release when it’s compared to its alternative: a home reversion plan.

Regarding your circumstances and current needs; you’ll discover that the equity release plans available on the market comprise varying benefits that’ll range from the flexibility to significantly cheaper plans.

Now, just look at this:

This article puts together and underlines five of the best equity release provides for lifetime mortgage loans that are under strict regulation of the Financial Conduct Authority (FCA).

Top Five Equity Release Providers

Aviva: Best for Older Borrowers

Most equity release plans available on the market are not available to people that are over 90. Thankfully, Aviva considers all applications, as long as the applicant is over 55.

Still...

You must be cautious of Aviva’s early repayment charges; they can soar as high as 25%. If you’d like a home reversion plan, the best lenders on the market are Crown Equity Release and Bridgewater.

More 2 Life: Best for Flexibility

If you’d like to access the most flexible equity release plans on the market, you don’t need to look beyond More2Life.

Just think of it...

Most of the equity release products offered by this broker maintain fixed early repayment charges, which reduce the more extended your loan period is. Its packages comprise a capital choice variety of products, with early repayment fees as low as 5% within the first five years, and it still falls to 3% from year six to nine.

Better yet...

The interest rate drops to zero after a decade of holding your equity release loan.

As if that’s not enough:

You also get downsizing protection and lower fees for including another person to the loan or excluding them.

Best Equity Release Companies

Note that: A product that comes with tremendous flexibility also costs more. Deciding to get an equity release is big; thus, you must carefully walk through all your needs and options with a financial adviser.

Just: Best Equity Release Broker if You Want Simplicity

This broker has five equity release products, and they also keep a relatively simplified structure regarding fees. It doesn’t have a lot of extra charges, unlike some other brokers, for actions like adding additional people to your loan.

And even more to that!

You also get free property valuation with low fees.

LV: Best Provider For Low Early Repayment Charges

LV maintains fixed early repayment charges across all the equity release products it offers. It has interest fees of 5% in your first five years, which also reduce to 3% from year six to nine, and vanishes after ten years.

Although, you’ll get a relatively limited variety of products; including a cash lump sum loan and some flexible plans that enable you to lock in your withdrawals at a fixed rate.

However...

It’s among the list of the minority of companies that still connect early repayment fees to prices of government bonds. The repayment conditions entail that you could repay up to 20% if you want to pay off your loan earlier.

Legal & General: Best for Enormous Loans

Legal and General provides enormous equity release loans of up to £2m; which makes them an excellent provider if you own precious property.

However, consider this:

They also connect government bonds to their early repayment charges, which may cause you to incur potentially high costs if you’d like to repay the loan earlier than agreed.

Selecting The Best Equity Release Broker

It would be best if you choose an equity release broker that is a registered member of the Equity Release Council. Certified member firms will offer you a “no negative equity” guarantee, and the total amount that you owe your lender will not significantly exceed your property’s value.

Now...

For specialised help with discovering the best equity release plan for you; seek professional financial advice.

Here is why:

Some companies will only advise on a few products; hence there is no real guarantee that you’re potentially getting the best equity release plan.

Ponder this: Legal and General are amongst the biggest equity release companies on the market, and they have their advisers. The benefit of having their advisers is that you’ll not pay any extra fees for the advice you’ll receive from them. The downside is that they will only advise and recommend products offered by their company.

As a result...

You risk missing out on better products from other providers.

Simply put:

Getting an independent equity release adviser will provide you with a more expansive view of the products available on the market. It’s necessary to find a professional and independent adviser that’s specialised in equity release products.

Age Partnership and Key Group are the largest independent equity specialists.

Best Equity Release Companies

Why Go For Equity Release Scheme?

Getting an equity release is superb, but not for everybody. You can release equity from the value of your property cheaply; by selling it and downsizing to a cheaper property or in a less expensive area.

Most people understandably wouldn’t want to leave their family houses, and equity release becomes a suitable method to raise extra income.

Therefore...

It would be best to understand the total cost and effects that releasing equity from your home will have regarding the amount of money you’ll leave to pass on to your family as their inheritance. When deciding to draw an equity release, it’s best to review your options with your beneficiaries or family.

After you get an equity release; it’s essential to consider whether you can make monthly repayments to your loan.

Here is why:

If you can pay back the interest monthly, you’ll increase the amount left to pass on as an inheritance.

Use our equity release calculator to become knowledgeable of how much cash you can release from the equity value accumulated in your home, also the costs you’re likely to encounter.

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