How do I find the ‘best’ equity release for me?

Are you considering whether releasing equity in your home is the right thing for you? Then you may be wondering how to find the best equity release company and the best rate. But what does ‘the best’ actually mean?

Firstly, it’s worth remembering that equity release is not a case of ‘one size fits all’. The plan that’s ‘best’ for one person isn’t necessarily right for another. That’s why we recommend seeking advice from a qualified advisor who works for an equity release company. They will take your circumstances into consideration and search the widest range of plans, ensuring you find the optimum product to release equity from your home.

How can I find the ‘best’ equity release company to help me?

An equity release company will arrange for the release of equity from your home in the form of a tax⁠-⁠free lump sum or a series of withdrawals. It’s vitally important to find a company that will give you correct, reputable and trusted advice. They will talk you through how to release equity in your home and make sure you’re happy before you go ahead.

The best companies will have a team of qualified advisors, that can help you decide whether equity release is the right option for you. If it is, they will search the market to find the most suitable plan for you and your situation.

To find a reputable company, the following points are worth bearing in mind:

  • It’s essential to check that they are a member of the Equity Release Council.
  • Find out if they offer a No Negative Equity Guarantee: This safeguards your beneficiaries from having to pay more to settle your lifetime mortgage loan than the amount your home sells for – even if property prices go down.
  • Ask if there is an arrangement or application fee to pay, so you’re clear up front.

Finding the best plans & the best rates¹

Once you’ve found the right equity release company, they will evaluate your individual situation before searching a range of plans from leading providers. Some companies have access to exclusive plans, too.

Equity release interest rates fluctuate the same as any mortgage rate, but according to Sovereign Boss, the current best rate 6.33% (AER) by Pure Retirement (December 2022). The equity release company that you choose will advise what the rates are at the time of your enquiry.

How much equity can I release?

The amount of equity you can release is different for everyone, and this is why it’s important to get professional advice before you can make a decision. The equity release company you talk to will be able to give you tailored advice. However, an equity release calculator like this one can give you an indication of the amount you’re looking at.

¹The rate available will depend on your individual circumstances

Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property and will reduce the value of your estate and impact funding long⁠-⁠term care. To understand the features and risks ask for a personalised illustration.

We provide initial advice for free and without obligation. Only if your case completes would our advice fee of £1,895 be payable. Other lender and solicitor fees may apply. Equity released, plus accrued interest to be repaid upon death, or moving into long⁠-⁠term care.