How to Spot Equity Release Companies to Avoid

If you’re looking into equity release, you’ll quickly realise there’s no shortage of providers. That’s good news — but with more choice comes the challenge of knowing who to trust.

So how do you spot the equity release companies best avoided? And more importantly, how do you find the ones that truly have your best interests at heart?

We’ve put this guide together to help you make a confident, informed choice — and avoid potential pitfalls along the way. Let’s walk through what to look out for in both equity release providers and advisers, so you feel fully in control every step of the way.

An equity release provider is the financial institution that offers you a lifetime mortgage or a home reversion plan — the two main types of equity release.

But it’s worth noting that most people don’t deal with these providers directly. Instead, you’ll usually go through a qualified adviser or broker, who helps you understand your options and find the right plan for your circumstances.

That means choosing the right adviser is just as important as choosing the right provider — and we’ll cover what to look for in both.

Before you go any further, ask yourself two key questions:

1. Is the company authorised by the Financial Conduct Authority (FCA)?
2. Are they a member of the Equity Release Council (ERC)?

These aren’t optional checkboxes — they’re essential.
The FCA is the UK’s financial regulator, and firms must be authorised to offer equity release products legally. The Equity Release Council, meanwhile, sets product standards and safeguards to protect consumers like you.

Most UK-based providers will meet these criteria — but don’t take it for granted. It only takes a minute to double-check their status on the FCA Register and the ERC member list, and it’s worth the peace of mind.

The ERC isn’t just a trade group — it’s the reason equity release is far safer today than it was in the past.

By choosing a provider who follows the ERC’s rules, you automatically benefit from these consumer protections:

• A no negative equity guarantee
  You’ll never owe more than your home is worth when it’s sold — no matter how long your plan runs or how interest builds up.
• The right to move home
  You can transfer your plan to a new property (as long as it meets the lender’s criteria) without penalty — ideal if you want to downsize or relocate later in life.
• The right to stay in your home for life
  With both lifetime mortgages and home reversion plans, ERC standards guarantee that you can stay in your home until you pass away or move into long-term care.

Every ERC member must offer these protections — but some may go further in terms of flexibility or product features. That’s why comparing plans is still important.

Not all equity release plans are the same — even when they follow ERC rules. It’s essential to find one that aligns with your goals.

For example:

• Do you want the option to make monthly interest payments, so the amount you owe doesn’t increase over time?
• Are you in less-than-perfect health, and might benefit from a plan that offers enhanced terms?
• Do you want drawdown flexibility, or a single lump sum?

Different providers offer different combinations of features. Knowing what you’re looking for — or talking it through with a good adviser — can help you match with a provider who ticks all the right boxes.

If you’re still exploring what’s available, a good equity release guide can help you compare options before speaking to an adviser.

Equity release fees can vary more than you might expect. Make sure you understand:

• Initial fees – This includes property valuation, arrangement, and legal fees. Some providers offer free valuations or low setup costs — others don’t.
• Ongoing costs – Most plans don’t have ongoing charges, but there are exceptions.
• Early repayment charges – This is a big one. If you might want to repay the loan early — for example, if your circumstances change — check whether the provider charges an exit fee and how much it is.

Understanding the full cost of a plan — not just the interest rate — helps you avoid surprises later on. Your adviser should explain all of this clearly before you commit.

Customer reviews can offer real insight into a company’s service, especially when you’re comparing providers or advisers.

We recommend checking out reviews on independent platforms like Trustpilot, where you can read verified feedback from real customers. Here are a few equity release providers and their current Trustpilot scores:

• Aviva – 4.5 stars
• Just – 4.7 stars
• Pure Retirement – 4.3 stars
• More2Life – 4.5 stars

Just keep in mind: many providers work through advisers only. That means you won’t always deal with the provider directly — your adviser will act on your behalf to arrange everything. So it’s worth checking their reviews too.

If you’re wondering whether equity release is safe, you’re not alone. The good news is that in today’s market — with FCA regulation and ERC standards — equity release is designed to protect you.

In fact, it’s a legal requirement that you receive regulated financial advice before taking out a plan. Your adviser is duty-bound to:

• Make sure equity release is genuinely right for you
• Discuss alternatives like downsizing or using other savings first
• Explain the long-term implications clearly

And one more thing: no trustworthy adviser will ever suggest using equity release to invest the money. That’s a red flag. Interest rolls up over time, so putting your released funds at risk through investment is a serious no-go.