Hey, if you’re over 55 with home equity tied up and dreaming of home improvements, travel, or helping the kids, equity release might be calling. It’s basically borrowing against your house without monthly payments interest rolls up, repaid when you pass or sell. In 2026, with house prices steady and rates competitive, it’s popular, but not risk-free. This guide compares top UK lenders, breaks down plans, flags big risks, and chats like we’re grabbing a coffee. No sales pitch just facts to keep your nest egg safe.
What Is Equity Release, Really?
Two main types: Lifetime mortgages (90% market) loan secured on home, no repayments till death/move. Home reversion: Sell part of house for cash, keep living there. Most pick lifetime for flexibility. ERC (Equity Release Council) standards promise no negative equity (owe less than house worth) and right to move/stay. 2026 volumes up 10% as boomers tap £3trn equity pot.
Pros: Tax-free cash, stay in home. Cons: Rolls-up interest eats equity, impacts inheritance.
Top Lenders Compared: Who’s Best in 2026
From fresh advisor rankings, leaders shine on rates, flexibility, service. Aviva, Legal & General top charts billions released. Pure Retirement innovates with health boosts. All ERC members.
Key Features Across Lenders
- Lump sum or drawdown (take as needed, less interest).
- Voluntary repayments (10%pa cuts roll-up).
- Inheritance protection (guaranteed min for heirs).
- Rates: 3.5-6% AER, monthly equivalent 6-7%.
Lender Breakdown
Aviva: Established giant, lump/drawdown, no neg equity. Strong sales Q4 2025. Rate ~6.73% MER.
Legal & General: Flexible, interest-serviced options. Award-winner.
More2Life/Just: Health-enhanced borrowing, adviser-led.
Pure Retirement: Competitive rates, downsizing protection ~6.51%.
Canada Life: Repayments, cash reserves.
LV=, Saga, Royal London, Scottish Widows: Flexible, trusted brands.
Broker-exclusive deals via Equity Release Supermarket beat direct.x
Read More: UK Mortgage Rates 2026: Fixed vs Variable What Experts Say
Handy Table: Top 2026 Lenders Comparison (Illustrative Rates, Age 70, £200k Home)
| Lender | Approx Rate (MER) | Min Age/Loan | Drawdown? | Repayment Flex? | Key Perk | Feefo Score |
| Aviva | 6.73% | 55/£15k | Yes | 10% pa | Inheritance guarantee | 4.8 |
| Legal & General | 6.6% | 55/£10k | Yes | Yes | Interest-serviced | 4.7 |
| Pure Retirement | 6.51% | 55/£10k | Yes | Yes | Downsizing protection | 4.9 |
| More2Life/Just | 6.8% | 55/£3k | Yes | Health boosts | Medical enhancements | 4.8 |
| Canada Life | 6.7% | 55/£10k | Yes | Cash reserve | Voluntary structures | 4.6 |
| LV= | 6.9% | 55/£10k | Yes | Fixed ERCs | Transparent pricing | 4.7 |