You are here: Home - Equity Release - News -

Cost of equity release at record low level

0
Written by:
18/04/2017
Fixed rates have fallen and there is a wider choice of products for older borrowers
Cost of equity release at record low level

Equity release lenders have driven down fixed rates to new lows, as competition in the sector hots up, said Moneyfacts.

The financial information provider said the average fixed rate for equity release deals has fallen to a record low of 5.63%, while lenders are expanding the number of options on offer to meet growing consumer demand.

More choice

The number of fixed equity release options has increased by a third in just two years, up from 52 options in 2015 to 82 today, the highest recorded figure in eight years.

And average fixed rates have dropped from 6.33% to 5.63% in the last year alone.

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Consumers these days may well be facing a retirement shortfall or have failed to set aside enough cash for potential care fees, so an equity release deal could give them a vital sum to enable them to enjoy their later years much more comfortably.

“Thanks to increased choice, consumers must now be more diligent when comparing deals, so seeking independent financial advice may prove vital. The lowest rate isn’t always the best option when it comes to picking the right equity release plan, and consumers may well prioritise how much they can receive in a lump sum instead.”

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

How much can you borrow?

A calculator designed to help you understand how much you can borrow towards your property

Your Mortgage Guides

Guide to Offset Mortgages

Download our handy guide to offset mortgages, brought to you in partnership with Scottish Widows Bank

Read More >

Are you on the right mortgage product?

See how much you could potentially save by remortgaging to a different product
Read previous post:
shutterstock_590695565
The property hotspots young professionals are flocking to

If you're an aspiring young urbanite, you have probably lusted over a home in one of these trendy postcodes

Close