The Moneyfacts Equity Release Star Ratings are based on the weighting of specific features, outside of headline rates and fees, which include minimum and maximum loan to values, interest roll up choices, interest-charging frequency and early repayment charges, among other criteria.
The star guides are intended to help consumers choose with confidence the equity release product that best suits their needs in terms of flexibility, accessibility and ongoing quality.
The star weightings have been allocated with emphasis placed on features that the consumer may regularly use or which could benefit them the most, said Moneyfacts.
Richard Eagling, editor of investment life and pensions Moneyfacts, said: “The equity release market has recently broken through the £3bn barrier for the first time, and this growing demand has sparked greater innovation among equity release providers. Elderly homeowners looking to unlock cash from their homes now have an unprecedented choice of equity release products and options to choose from. The annual Moneyfacts Equity Release Star Ratings provide consumers with a valuable insight into the quality of the equity release features on offer, outside of the products’ key features.”
Paul Saroya, director, Viva Retirement Solutions and 2017 Equity Release Award-winner, said: “I think that the number of lenders with four and five stars is testament to the flexibility that has started to emerge in the equity release world over the last few years.
He added: “I believe that lenders must continue to innovative in the coming years to make sure that equity release is truly mainstream for the future. This is great news for clients and potential clients as it will help get solutions that can be individually tailored to their needs.”
Managing director of Laterlivingnow, Simon Chalk said he’d also like to see adviser-focused listings which took into account service levels and the financial strength of the lender.
“By comprehensively fact-finding any given client scenario, a learned adviser would determine with them the features of a plan that are pertinent to them now, or potentially in the future. That helps to distil the array of plans that research tools initially boil the list down to, with final a recommendation taking into account costs over the projected term.”
Five Stars
Aviva
• Lifestyle Flexible Option Lifetime Mortgage
• Lifestyle Lump Sum Max Lifetime Mortgage
• Flexible Lifetime Mortgage
Just Restirement
• Lump Sum Plus Enhanced
• Lump Sum Lite
• Lump Sum Plus
• Drawdown Lifetime Mortgage
Legal & General Home Finance
• Flexible Max
• Flexible Max Plus
• Flexible Plus
• Flexible
• Premier Flexible
• LV=
• Flexible Lifetime Mortgage
More 2 life
• Tailored Choice
• Capital Choice
OneFamily
• Lump Sum Interest Payment
• Lump Sum Voluntary Payment
• Lump Sum Interest Roll-up
Pure Retirement
• Max Drawdown
• Max Plus Drawdown
• Drawdown
Retirement Advantage
• Voluntary Select
• Interest Select
• Lifestyle
4 STARS
Hodge Lifetime
• Lifetime Mortgage Max
• Lifetime Mortgage Ultra
• Fixed Rate Retirement Mortgage (Interest only)
• Lifetime Mortgage Plus
• Lump Sum Lifetime Mortgage
• Indexed Lifetime Mortgage Max
• Indexed Lifetime Mortgage
• Indexed Lifetime Mortgage Plus
LV=
• Lump Sum Lifetime Mortgage+ Max
• Lump Sum Lifetime Mortgage+ Standard
• Lump Sum Lifetime Mortgage+ Lite
• more 2 life
• Capital Choice Plus
OneFamily
• Two-year Fixed Lump Sum Interest Roll-up
• Two-year Fixed Lump Sum Voluntary Payment
Retirement Advantage
• Second Home
• Landlord
