Equity Release Lenders: Your Guide to Unlocking Home Value

If you’re over 55 and own your home, you’ve probably heard about equity release. It lets you turn part of your property’s value into cash without moving out. The key decision isn’t the product itself – it’s which lender you trust to handle it.

In the UK, dozens of firms market equity release plans, from big banks to specialist providers. Each one has its own fees, interest rates, and customer service reputation. Picking the right lender can mean more money in your pocket and fewer surprises down the line.

How Equity Release Works

When you take out an equity release plan, the lender pays you a lump sum or a regular income. The amount is based on your home’s market value, your age, and your health. You don’t have to make monthly repayments – the loan, plus interest, is repaid when you die or move into long‑term care.

There are two main types of plans. A lifetime mortgage adds interest to the loan every year, so the debt grows over time. An interest‑only plan lets you pay just the interest each month, keeping the original loan amount unchanged.Both options protect you from having to sell your house early, but they affect how much you’ll leave for heirs. Understanding the math helps you avoid a situation where the debt eats up most of the estate.

Choosing the Best Lender

Start by checking whether a provider is approved by the Financial Conduct Authority (FCA). An FCA‑regulated lender follows strict rules on transparency and fairness. Next, compare the total cost of each plan – not just the interest rate, but also setup fees, valuation fees, and any early‑repayment charges.

Read customer reviews on independent sites. Look for patterns: do borrowers report clear communication, timely payments, and helpful advisors? A provider with strong after‑sales support can make a big difference when you need to adjust your plan later.

Ask the lender for a written illustration. It should show exactly how much you’ll receive now, how the balance will grow, and what the final repayment could look like. If the figures seem vague, it’s a red flag.Finally, consider your personal goals. Want a lump sum for home improvements? A lifetime mortgage might be best. Need a steady income for daily expenses? An interest‑only plan could suit you better. The right lender will tailor the product to match those needs.

Bottom line: don’t rush. Take the time to research, ask questions, and compare at least three different equity release lenders. The extra effort now can protect your finances and keep your home in the family for years to come.