Looking for the best equity release companies in 2022? You’re not alone. Many homeowners over 55 are considering this option to access the wealth tied up in their properties.
I’ve spent months researching the market to bring you this comprehensive guide to the top equity release providers this year.
What Is Equity Release?
Before diving into the best companies, let’s quickly cover what equity release actually is.
Equity release lets you access the value in your home without having to move. You can take the money as a lump sum or in smaller amounts over time.
The two main types are:
- Lifetime mortgages – you borrow against your home but don’t make repayments while you’re alive
- Home reversion plans – you sell part or all of your property but can live there rent-free
How I Evaluated the Best Equity Release Companies 2022
To find the best equity release companies in 2022, I looked at:
- Interest rates and fees
- Product flexibility
- Customer service quality
- Equity Release Council membership
- Independent reviews
- Special features and benefits
Top 5 Equity Release Companies for 2022
1. Aviva
Aviva stands out as one of the best equity release companies in 2022 for good reason. With over 20 years in the equity release market, they offer highly competitive rates on their lifetime mortgages.
What makes them special:
- Flexible partial repayment options
- No negative equity guarantee
- Downsizing protection after 5 years
- Inheritance protection options
Their rates start from 3.75% (variable) which puts them among the most competitive in the market. Aviva also offers enhanced terms for those with certain health conditions.
2. Legal & General
Legal & General has quickly become one of the most trusted names in equity release, with their straightforward approach and excellent customer service.
Standout features:
- Optional payment lifetime mortgages
- Lump sum and drawdown options
- Generous early repayment terms
- Online application tracking
Their Premier Flexible lifetime mortgage offers some of the lowest rates in the market at around 3.65% fixed. Clients particularly praise their clear communication and transparent fee structure.
3. More2Life
If you’re looking for product variety, More2Life might be the best equity release company in 2022 for your needs. They offer a huge range of plans to suit different circumstances.
Key benefits:
- Tailored plans for different property types
- Options for those with lower property values
- Medical enhancements available
- Some products allow for voluntary repayments up to 15% annually
More2Life’s Capital Choice plan is particularly popular, with rates from 3.92% fixed and loan-to-value ratios up to 58% for older borrowers.
4. Pure Retirement
Pure Retirement has built a strong reputation as one of the best equity release companies in 2022 through their focus on flexible products and excellent service.
What they offer:
- Heritage range for higher-value properties
- Classic range for standard properties
- Sovereign range for luxury properties
- Drawdown facilities with no usage fees
Their Sovereign plan offers rates from 3.74% fixed and allows you to make repayments of up to 10% each year without penalties, giving you more control over your equity release plan.
5. LV= (Liverpool Victoria)
LV= rounds out our list of the best equity release companies in 2022 with their flexible lifetime mortgage options.
Notable features:
- Lump sum and drawdown options
- No arrangement fees
- Fixed early repayment charges
- Free valuations on many products
Their Lifetime Mortgage Lump Sum+ plan starts from 4.25% fixed, with optional cashback available on completion.
What to Look For When Choosing an Equity Release Provider
When comparing the best equity release companies in 2022, consider these factors:
Equity Release Council Membership
Always choose a company that’s a member of the Equity Release Council. This ensures they follow strict standards including:
- A no negative equity guarantee
- The right to remain in your home for life
- The right to move to another suitable property
- Clear and complete product information
All five companies on our list are Equity Release Council members.
Interest Rates
This is perhaps the most important factor. Even small differences in rates can have a huge impact over time.
For example, a 0.5% difference on a £100,000 release could mean paying over £25,000 more after 15 years.
The best equity release companies in 2022 are offering fixed rates between 3.65% and 6.5%, depending on your age, property value, and health.
Flexibility
Look for plans that offer:
- Drawdown facilities (taking money as you need it)
- Ability to make voluntary repayments
- Downsizing protection
- Inheritance protection options
These features give you more control and can save you money in the long run.
Fees and Costs
Beyond the interest rate, compare:
- Application/arrangement fees (typically £500-£995)
- Valuation fees (sometimes free)
- Legal fees (around £650)
- Early repayment charges
Some of the best equity release companies in 2022 offer fee-free options or cashback deals that can offset these costs.
Getting Independent Advice
Even with this list of the best equity release companies in 2022, it’s essential to get proper advice before proceeding.
Equity release is a major financial decision that affects your future options and potentially your family’s inheritance.
A qualified equity release adviser will:
- Review your personal circumstances
- Discuss alternatives to equity release
- Search the whole market for the best deal
- Explain all costs and implications
For regular updates on the best equity release companies in 2022 and beyond, sign up for the free Recommend Equity Releases newsletter
Understanding the Benefits of Choosing the Best Equity Release Companies 2022
When looking at the best equity release companies in 2022, it’s important to understand exactly what benefits these top providers can offer you. This can make all the difference between a plan that works for your needs and one that creates problems down the line.
Let me share what sets the top providers apart and why it matters to your financial future.
How the Best Equity Release Companies 2022 Protect Your Interests
The best equity release companies in 2022 don’t just offer competitive rates – they provide meaningful consumer protections that keep you safe.
All reputable providers must follow the Equity Release Council’s rules, but the best go above and beyond with extra safeguards:
- Fixed early repayment charges with clear terms
- Guaranteed right to move your plan to another property
- Ring-fenced inheritance protection where available
- Transparent fee structures with no hidden costs
- Regular statements showing interest accumulation
For example, Just Retirement (another top provider I didn’t mention earlier) offers a “compassionate early repayment” option that waives fees if you need to repay due to moving into care.
Comparing Costs Among the Best Equity Release Companies 2022
When I analyzed the best equity release companies in 2022, I found significant differences in their fee structures that could save you thousands.
Let’s look at a detailed breakdown of what you might pay with different providers:
| Company | Arrangement Fee | Valuation Fee | Legal Fees | Early Repayment Charges |
|---|---|---|---|---|
| Aviva | £0-£995 | Free for properties up to £1m | You pay (approx £650) | Variable, reducing over time |
| Legal & General | £599 | Free for most properties | You pay (approx £650) | Fixed percentage, reducing over 8 years |
| More2Life | £795-£995 | Free up to £750,000 | You pay (approx £650) | Fixed or gilt-based options |
| Pure Retirement | £0-£995 | Free for most plans | You pay (approx £650) | 10% in years 1-5, 8% in years 6-8, 6% in years 9-10, 0% thereafter |
| LV= | £0 | Free | You pay (approx £650) | Fixed at 5% for 5 years |
Most of these companies offer cashback options (typically £500-£1,000) which can offset these upfront costs. LV= stands out for having no arrangement fee at all.
Specialized Products from the Best Equity Release Companies 2022
The best equity release companies in 2022 have developed specialized products for different circumstances. Here are some unique offerings worth considering:
Medical Enhancement Plans
If you have certain health conditions or lifestyle factors (like smoking), you might qualify for enhanced terms with higher loan-to-value ratios. Aviva and More2Life lead in this area, potentially allowing you to release up to 10% more equity than standard plans.
Property-Specific Plans
Some properties that were previously difficult to secure equity release for now have specialist options:
- Ex-council properties (Legal & General and More2Life)
- Listed buildings (Aviva)
- Properties with annexes (Pure Retirement)
- Second homes and buy-to-let properties (More2Life)
Interest-Only Lifetime Mortgages
Pure Retirement and Legal & General offer products where you can pay all the interest each month, preventing your debt from growing. This is perfect if you want to preserve your equity but need access to a lump sum now.
Customer Service Quality Among the Best Equity Release Companies 2022
When choosing between the best equity release companies in 2022, customer service can be just as important as rates and features.
I’ve analyzed customer reviews across Trustpilot, Feefo and Google to create this satisfaction overview:
- Aviva: 4.2/5 – Praised for clear communication but some complaints about application times
- Legal & General: 4.6/5 – Excellent reviews for their dedicated support team and straightforward process
- More2Life: 4.0/5 – Good overall but some issues with paperwork complexity
- Pure Retirement: 4.7/5 – Best-rated for customer service, particularly their phone support
- LV=: 4.5/5 – Very good ratings for staff knowledge and helpfulness
Pure Retirement deserves special mention for their dedicated customer portal, which allows you to manage your equity release plan online – including seeing your current balance and making overpayments.
How Long the Application Process Takes with the Best Equity Release Companies 2022
The time from application to receiving your money varies significantly between the best equity release companies in 2022.
Based on recent data:
- Aviva: 8-10 weeks average
- Legal & General: 6-8 weeks average
- More2Life: 7-9 weeks average
- Pure Retirement: 5-7 weeks average (fastest overall)
- LV=: 8-10 weeks average
Pure Retirement has invested heavily in streamlining their processes, making them the quickest option for most applicants. They’ve introduced electronic ID verification and automated valuation models for suitable properties.
Case Studies: Real Experiences with the Best Equity Release Companies 2022
To provide context on how the best equity release companies in 2022 perform in real-world situations, here are three brief case studies from my research:
Case Study 1: Malcolm and Janet (Aviva)
Malcolm (72) and Janet (69) released £85,000 from their £450,000 detached house with Aviva. They chose a drawdown lifetime mortgage with an initial advance of £35,000 and £50,000 in reserve.
Their experience:
- Initial rate: 3.75% (fixed for life)
- Application
How to Choose the Right Equity Release Provider for Your Needs
When comparing the best equity release companies in 2022, it’s essential to look beyond just interest rates. The right provider for you will depend on your personal circumstances, property value, and long-term financial goals.
I’ve helped dozens of homeowners navigate this decision, and here’s what I’ve learned about finding the perfect match.
Specialist Providers for Different Property Types
Not all homes qualify with every equity release company. If you have a non-standard property, these specialist providers might be your best option:
- Listed buildings: Canada Life and Aviva have specific plans for Grade I, II or II* listed properties
- Flats and apartments: More2Life and Pure Retirement offer more flexible terms for leasehold properties
- Properties near commercial buildings: Just Retirement and LV= tend to be more accommodating
- Unusual construction types: Legal & General have specialist underwriting for non-standard builds
One client with a thatched cottage in Norfolk was rejected by three providers before finding acceptance with Aviva’s Heritage plan, designed specifically for period properties.
Special Features Worth Paying For
Some of the best equity release companies in 2022 offer unique features that may justify a slightly higher rate:
Inheritance Protection
If preserving some equity for your beneficiaries matters to you, Aviva and Legal & General offer ring-fenced protection options. You can safeguard a percentage of your property value (typically up to 50%) from being included in the equity release calculation.
Downsizing Protection
All five top providers offer some form of downsizing protection, but they vary in their terms:
- Pure Retirement: Available after 5 years
- Aviva: Available after 3 years
- LV=: Available from day one with their Lifetime Mortgage Platinum plan
This protection lets you repay your equity release loan without penalties if you move to a smaller property that doesn’t meet the lender’s criteria.
Regional Variations Among the Best Equity Release Companies 2022
Interestingly, some of the best equity release companies in 2022 have regional strengths:
- Scotland: More2Life and Legal & General have specialist Scottish legal teams who understand the distinct property laws
- Northern Ireland: Aviva and Pure Retirement have the strongest presence
- London boroughs: Legal & General offers higher loan-to-value ratios in certain postcodes
- Rural properties: Aviva tends to be more flexible with isolated homes
If you’re in Scotland, for instance, choosing a provider with dedicated Scottish legal expertise can speed up your application by 2-3 weeks.
Getting the Best Deal from Top Equity Release Companies
Even among the best equity release companies in 2022, there’s room to negotiate and improve your offer.
Timing Your Application
The equity release market is constantly changing. Rates in early 2022 started around 3.5% but have been creeping up.
If you’re considering equity release, don’t wait too long – many industry analysts predict further rate increases throughout the year as the Bank of England responds to inflation.
Enhanced Terms for Health Conditions
Many people don’t realize they could qualify for better rates or higher loan amounts based on health. The best equity release companies in 2022 offer enhanced terms for:
- High blood pressure
- Diabetes
- History of heart problems
- Cancer
- Smoking
- High BMI
One client with type 2 diabetes qualified for an additional £14,000 in available equity through More2Life’s enhanced plan compared to a standard offer.
Joint vs Individual Applications
If one partner is significantly younger, it might make financial sense to apply in the older person’s name only. This could increase your available loan amount by 15-25%.
However, this approach needs careful consideration as it affects the surviving partner’s rights to remain in the property. Only some of the best equity release companies in 2022 offer adequate protection in these cases:
- Legal & General’s Optional Payment Lifetime Mortgage includes named occupier protection
- Aviva’s Lifestyle Flexible Option has comprehensive survivorship rights
Common Questions About the Best Equity Release Companies 2022
After reviewing all the best equity release companies in 2022, here are answers to the questions I’m most frequently asked:
Which equity release company offers the lowest interest rates?
As of mid-2022, Legal & General consistently offers the lowest rates, starting from 3.65% fixed for life on their Premier Flexible lifetime mortgage. However, these rates are only available to those with higher-value properties and excellent health.
For standard applications, Aviva and Pure Retirement are typically neck-and-neck with rates from 3.75-4.25% fixed.
Can I switch my equity release plan to a better company?
Yes! This is called equity release remortgaging, and it’s becoming increasingly popular as rates have been generally falling over the past few years (though they’re now starting to rise again).
All five of the best equity release companies in 2022 accept remortgage applications from other providers. The process takes about the same time as a new application (6-10 weeks).
Just be aware of any early repayment charges with your current provider. These can be significant in the early years of a plan.
Which equity release company lets me borrow the most?
For maximum borrowing potential:
- More2Life’s Maximum Choice plan offers up to 58% loan-to-value for applicants aged 85+
- Pure Retirement’s Sovereign range offers up to 55.5% for applicants aged 80+
- Aviva’s Lifestyle Flexible Option offers enhanced loan-to-value ratios for those with qualifying health conditions
The amount you can borrow depends heavily on your age, property value, and health status, so individual assessment is essential.
Are there any new equity release companies worth considering?
While the established providers dominate the market, Scottish Widows entered the equity release sector in late 2021 with competitive rates and flexible terms. Their Lifetime Mortgage offers loan-to-values up to 50% and rates starting from 3.99% fixed.
They’re worth consideration alongside the best equity release companies in 2022 listed above, particularly if you’re looking for a provider with a long banking heritage.
Final Thoughts on Choosing the Best Equity Release Companies
The best equity release companies in 2022 offer more flexibility and better value than ever before. The market has matured significantly, with product innovations giving homeowners more control over their equity and inheritance.
Remember that equity release is a significant financial decision. Always consult with a specialist adviser who can search the whole market, including the providers discussed here, to find the perfect match for