Equity release mortgage rates fall to all-time low
The average rate of a lifetime mortgage has fallen to a new low of 3.95%, according to Moneyfacts.
The financial information provider added that the volume of options available to consumers has also reached a high of 488, up from 62 in 2016.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “The equity release market has started this year awash with rate cuts and prospective borrowers looking to release wealth out of their home will find that the interest charged, on average, has now fallen to a record low. Indeed, the average lifetime mortgage rate has fallen below 4% for the first time ever, showing that lenders are keen to meet demand, with some repricing their range multiple times over the past four weeks.
“Now that there are more options on the market than ever seen before, it is essential to seek qualified advice to compare deals and explain the workings.”
According to the Equity Release Council, the proportion of homeowners aged 55+ who are worried about running out of money in retirement has increased to over a third (34%), up from 27% a year earlier.