Equity release lender financial strength

Name: How to check equity release lender financial strength
Creator: Richard Parker

A lifetime mortgage is a relationship that can last decades, so it is fair to ask how financially strong the lender is, and what would happen if it ran into trouble. This page does not hand out ratings or solvency numbers, because those change and should be read from the source. Instead it explains what financial strength means here, how to check it yourself, and why the structure of equity release protects you more than people expect.

The reassuring part first. With a plan from an Equity Release Council member, the no negative equity guarantee means you and your estate can never owe more than the home sells for. Your right to live in the home for life is a contractual term of the plan, not something that depends on the lender’s mood. The lender’s financial strength matters most for service, funding of any undrawn drawdown reserve and the long-term running of the plan, rather than for your basic right to stay.

No ratings or solvency figures are stated here. Financial strength data changes and must be read from the primary source on the day. The table below tells you what to look at and where, not what the numbers are.

What to check, and where

Where to check an equity release lender's financial strength
What to look at	What it tells you	Where to find it
Solvency II disclosures (SFCR)	The Solvency and Financial Condition Report each regulated insurer publishes yearly. Look at the solvency capital ratio, which shows capital held against the regulatory requirement.	The lender or parent insurer website, and the Prudential Regulation Authority.
Credit ratings	Independent assessments of financial strength from rating agencies such as Fitch, Moody’s and S&P. Higher grades indicate a stronger ability to meet obligations.	The rating agency websites and the lender’s investor pages.
FCA and PRA authorisation	Confirm the lender is authorised and check its permissions and any notices. Regulated firms must meet capital and conduct rules.	The Financial Conduct Authority register at register.fca.org.uk.
Equity Release Council membership	Council members commit to the consumer standards, including the no negative equity guarantee and the right to remain in your home for life.	The Equity Release Council member directory.
Annual report and accounts	The parent group accounts show profitability, capital and how the lending is funded. Useful for the longer-term picture.	The lender’s investor relations pages and Companies House.

Source: Primary regulatory and rating sources. Read current values from each source directly. June 2026

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| What to look at | What it tells you | Where to find it |
| --- | --- | --- |
| Solvency II disclosures (SFCR) | The Solvency and Financial Condition Report each regulated insurer publishes yearly. Look at the solvency capital ratio, which shows capital held against the regulatory requirement. | The lender or parent insurer website, and the Prudential Regulation Authority. |
| Credit ratings | Independent assessments of financial strength from rating agencies such as Fitch, Moody’s and S&P. Higher grades indicate a stronger ability to meet obligations. | The rating agency websites and the lender’s investor pages. |
| FCA and PRA authorisation | Confirm the lender is authorised and check its permissions and any notices. Regulated firms must meet capital and conduct rules. | The Financial Conduct Authority register at register.fca.org.uk. |
| Equity Release Council membership | Council members commit to the consumer standards, including the no negative equity guarantee and the right to remain in your home for life. | The Equity Release Council member directory. |
| Annual report and accounts | The parent group accounts show profitability, capital and how the lending is funded. Useful for the longer-term picture. | The lender’s investor relations pages and Companies House. |

Source: Primary regulatory and rating sources. Read current values from each source directly. June 2026

What happens if a lender fails

An equity release lender is not like a bank holding your savings. With a lifetime mortgage you have borrowed money secured on your home, so the lender is owed by you, not the other way round. If a lender were to fail, the loans it holds, including yours, would normally be transferred to or administered by another regulated entity, and the terms of your plan, including the no negative equity guarantee and your right to remain, would continue to apply. The contractual protections travel with the loan. This is one reason regulation focuses heavily on how lenders fund and capitalise this lending, which is explained further in how lenders fund lifetime mortgages.

How this is measured

This page is a guide to assessing financial strength, not a scorecard. It does not publish solvency ratios or credit ratings, because those are time-sensitive and belong with the body that issues them. The right approach is to read each lender’s current disclosures directly.

Sources to use: Prudential Regulation Authority materials and each insurer’s Solvency and Financial Condition Report for capital and solvency; Fitch, Moody’s and S&P for credit ratings; the Financial Conduct Authority register for authorisation and permissions; the Equity Release Council directory for membership and the consumer standards; and the lender’s annual report and accounts for the wider picture. Any illustrative table on this site names the source to check rather than a value to trust. Written and reviewed by Richard Parker, June 2026.