Equity release has become a notable option for homeowners who find that a portion of their wealth is tied up in bricks and mortar. In the United Kingdom, the term often surfaces in discussions around aging, planning for care costs, or funding home improvements without selling the family home. One name you may have encountered in mainstream conversations is Martin Lewis, a consumer advocate who regularly cautions viewers about the costs, responsibilities, and long-term effects of equity release. While his commentary emphasizes informed decision making and comparison shopping, the topic itself remains the realm of financial products designed to unlock value from a home while staying put.
At its core, equity release allows homeowners to borrow money against the value of their property. There are two primary ways this is offered: lifetime mortgages and home reversion plans. A lifetime mortgage is the more common route and involves borrowing against the property while the loan plus accrued interest is repaid when the home is sold, often after death or when the homeowner moves into long-term care. The loan can be taken as a lump sum or in smaller draws over time, giving flexibility to fund care, home repairs, or debt consolidation. A home reversion plan, by contrast, involves selling a portion of the home to a provider in exchange for cash or a regular income, while the homeowner retains the right to live there for life. In most cases, lifetime mortgages are the default choice due to their flexibility and the option to retain ownership of the property.
The market has grown as more retirees seek to supplement pension incomes or to avoid downsizing. This has brought a wave of providers and brokers into focus. In the UK, prominent names include established life insurers and specialist lenders such as Legal & General Home Finance and Aviva, which offer lifetime mortgage products with various drawdown options and repayment terms. More recently, specialist advisory groups and product providers like More2Life from the Just Group, and broker platforms such as Age Partnership, have broadened the options for consumers seeking quotes and tailored plans. Some lenders offer features like drawdown facilities that let you release funds in stages, a No Negative Equity Guarantee to protect against your debt exceeding the home value, and flexible repayment choices during the contract term.
Comparing top providers and platforms can be complex because each product can differ in drawdown flexibility, interest rate terms, fees, and patient options. Here are some practical comparison points to consider when evaluating offers:
