Compare Aegon Equity Release Quotes Against The Market

For many UK homeowners, Aegon is a household name associated with pensions, life insurance, and workplace savings. With a heritage dating back to the 1830s (originally as Scottish Equitable), they are a heavyweight in the financial sector. However, when it comes to equity release, Aegon operates a bit differently than some of its competitors.

This article explores Aegon’s approach to equity release, helping you understand how they help retirees access the wealth tied up in their homes.

For independent advice about later life lending products from this provider, get in touch with one of our equity release specialists below:

Who is Aegon?

Aegon is an international financial services provider with a massive presence in the UK. They focus primarily on helping people achieve a lifetime of financial security through investment and retirement solutions. In the UK, they are one of the largest providers of workplace pensions and individual savings.

When it comes to equity release, Aegon acts as an introducer. Rather than lending their own capital for lifetime mortgages, they have a long-standing strategic partnership with Legal & General, one of the UK’s leading equity release specialists. This means when you enquire through Aegon, you are typically being guided toward a product provided and managed by Legal & General.

What is Aegon Equity Release?

Because Aegon partners with Legal & General, the products available to their customers are lifetime mortgages. These are loans secured against your home that allow you to release tax-free cash while you continue to live in the property as the owner.

The range typically includes:

• Lump Sum Lifetime Mortgages: For those who want a single, large payment upfront.

• Drawdown Lifetime Mortgages: For those who want an initial smaller sum and a pre-agreed "reserve" of cash they can tap into later, only paying interest on the money they actually withdraw.

Key Features of Aegon’s Partner Plans

By choosing an equity release plan introduced through Aegon, you benefit from the standards set by the Equity Release Council, which include:

• No Negative Equity Guarantee: You (or your estate) will never owe more than the final sale price of your home.

• The Right to Remain: You can stay in your home for life, or until you move into permanent long-term care.

• Portability: The right to move your plan to a new, suitable property if you decide to downsize or relocate.

• Voluntary Repayments: Most plans now allow you to make optional partial repayments (often up to 10% per year) to help manage the interest and protect your inheritance.

• Fixed Interest Rates: The rate is fixed for the life of each amount you borrow, protecting you from future market volatility.

Aegon Equity Release Interest Rates

The interest rates you receive will be those offered by Legal & General at the time of your application. These rates are highly competitive and are fixed for life.

Factors that influence your specific rate include your age, your health, the value of your property, and the percentage of the home's value you wish to borrow (LTV). It is vital to get a personalized illustration to see the exact rate available to you.

Eligibility Criteria

To be eligible for the lifetime mortgages Aegon introduces, you generally need to meet these benchmarks:

• You must be a UK homeowner aged 55 or over.

• The property must be your main residence in England, Scotland, or Wales.

• The property must be worth at least £70,000 (higher for certain property types like flats).

• The minimum amount you can release is usually £10,000.

• You must be able to pay off any existing mortgage on the property using the funds you release.

Aegon Equity Release Reviews

Reviews for Aegon as a brand are generally positive regarding their customer service and digital platform. However, because the equity release product is handled by a partner, you should also look at Legal & General’s reviews. Legal & General is widely recognized for its "standard-setting" service in the equity release market, frequently winning awards for its transparency and the efficiency of its application process.

Pros and Cons of Aegon Equity Release

Pros:

• Brand Reliability: You are dealing with two of the biggest names in UK finance (Aegon and Legal & General).

• Expert Advice: You will be guided by qualified specialists who understand the Aegon ecosystem and how equity release fits into your wider retirement plan.

• High Standards: All plans meet the strict consumer protections of the Equity Release Council.

• Product Flexibility: Access to market-leading features like inheritance protection and voluntary repayments.

Cons:

• Limited Direct Choice: You are essentially being introduced to one lender. While L&G is excellent, a whole-of-market broker might find a slightly better deal elsewhere.

• Compounding Interest: Like all lifetime mortgages, interest builds up over time and will reduce the value of your estate.

• Impact on Benefits: Taking out a lump sum can affect your eligibility for means-tested state benefits.

How to Apply

To start the process, you usually contact Aegon’s retirement team. They will then introduce you to a qualified financial adviser who will conduct a full suitability check.

This process involves a deep dive into your finances to ensure that equity release is the right move for you. Only after this advice and a successful property valuation will a formal offer be made.

Get started here to begin a free, no-obligation chat with an equity release adviser who can help you decide whether it’s in your best interest to apply for a product through Aegon.