Do Any UK Banks Offer Equity Release?

Which Banks Offer Equity Release?

At the moment, Lloyds Banking Group is the only major UK banking group connected to an equity release provider. But before you head to your nearest Lloyds branch, there’s something you should know:

• Lloyds Bank itself does NOT offer equity release.
• Instead, their subsidiary, Scottish Widows, provides lifetime mortgages (the most common type of equity release).
• If you bank with Lloyds, Halifax, or Bank of Scotland, you might be referred to Scottish Widows if you enquire about equity release.

However, before you assume Scottish Widows is the best option, it’s worth comparing other providers. You might find better interest rates, higher borrowing amounts, or more flexible plans elsewhere.

Another familiar name in banking is Nationwide Building Society. They used to offer equity release but now only support existing lifetime mortgage customers looking to switch deals or borrow more. They also provide Retirement Interest-Only (RIO) mortgages as an alternative.

Why Don’t More Banks Offer Equity Release?

It’s a fair question. Most banks offer regular mortgages, so why not lifetime mortgages?

The answer comes down to how equity release works:

• With a standard mortgage, the bank gets regular monthly repayments from customers.
• With a lifetime mortgage, there are usually no monthly repayments—the loan is repaid only when the homeowner passes away or moves into care.

This repayment structure doesn’t align well with how banks manage their funds, so they stay out of the equity release market.

On the other hand, insurance companies are well-suited to offer equity release. They invest in long-term financial products like annuities and pensions, making them more comfortable lending money that will only be repaid years down the line.

Who Actually Offers Equity Release?

If you’re looking for equity release, don’t worry—many well-known companies provide it.

Some of the biggest names include:

• Insurance Companies – Aviva, LV=, Canada Life, Legal & General
• Specialist Later-Life Lenders – Just, More2Life

These companies focus on later-life lending and design their plans specifically for homeowners aged 55+.

Can My Bank Help Me Find Equity Release?

Even though most UK banks don’t offer equity release directly, some partner with equity release advisers.

This means they might refer you to an external company that provides equity release.

However, there’s something to keep in mind:

• Some banks only refer to one provider, which could limit your options.
• It’s often better to work with an independent adviser who can compare plans from multiple providers to find the best deal for you.

How to Find the Right Equity Release Plan

Rather than going through your bank, you could work with a specialist equity release broker like Equity Release Wise. Their expert advisers can help you:

• Check if you’re eligible
• See if equity release is the right financial choice for you
• Compare deals from multiple leading providers
• Understand the pros and cons of each plan
• Choose a plan that suits your financial needs and goals
• Guide you through the entire application process

By working with an adviser who searches the whole market, you won’t be limited to just one lender—and that means you’re more likely to get a better deal.

Final Thought: Should You Only Look at Your Bank for Equity Release?

Nope! While banks like Lloyds might refer you to Scottish Widows, there’s a whole world of equity release providers out there.

The best approach? Compare multiple lenders, explore your options, and get advice from an independent specialist who can help you secure the right deal for your situation.