Five-fold increase in lifetime mortgage products in five years
There are now over 200 lifetime equity release mortgages available on the market, five times more than that seen in 2014, when there were just 40, according to Moneyfacts.
The financial information provider noted particularly strong growth in the last year alone, with the market growing by more than 50%.
It said the huge increase in choice ‘has been driven by growing demand from consumers searching for options to release cash from their homes’.
At the same time as product numbers have rocketed, increased competition has helped to push interest rates down for equity release borrowers, from an average 6.1% in 2014 to 5.24% today.
There’s also more flexibility in terms of fees today, with fee-free products accounting for 21% of products, compared to just 5% five years ago.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Lenders have expanded their product ranges vigorously, in response to consumer demand for greater choice in the market and, as such, the number of deals available is now at its highest level. The market has expanded five times over from five years ago, showing that lenders are primed and ready with a variety of deals for prospective borrowers.
“It is worth keeping in mind that that equity release is not solely aimed at the equity rich but cash-poor or for those looking to plug the gap of their later life care costs.
“These types of mortgages could be an option for those hoping to soften any Inheritance Tax blow while lifetime mortgages may also be an alternative to borrowers who have considered downsizing, but who do not want to move and pay Stamp Duty.”