You are here: Home - Equity Release - News -

Equity release mortgage rates at record lows

0
Written by:
19/10/2016
The cost of lifetime mortgages is lower than ever
Equity release mortgage rates at record lows

Lifetime mortgage interest rates have fallen to a record low level in the months following the Brexit vote, according to Legal & General.

The provider’s flexible lifetime mortgage product now offers an interest rate of 3.71%, compared to 5.19% in April this year.

According to L&G’s figures, a flexible lifetime mortgage of £100,000 taken out today could see the amount owed after 15 years drop by £40,901 compared to one taken in April, from £213,608 to £172,707.

The current lifetime rate is also lower than the average standard variable mortgage rate of 4.27%. This means that customers over 60 on their lender’s SVR could potentially save money by switching to a lifetime mortgage at a lower interest rate.

The Equity Release Council said that even before the latest reductions, lifetime mortgage rates dropped faster than any other form of lending in first six months of 2016.

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.

Your Mortgage Guides

Your Mortgage Award Winners 2017-2018

Download our guide to the best mortgage lenders in the UK

Read More >

Read previous post:
London’s house prices over twice the national average

Only 2% of homes sold today in the capital fetch below £150,000 compared to 87% in 1995, according to Jackson...

Close