The number of equity release products on the market has reached a record high, with over 5001 products now available, resulting in greater choice and flexibility for consumers. The average interest rate for Q1 was 2.84%, which compares to an average rate of 4.16% in 2019.1
A resilient market
The equity release market is proving resilient to the impact of the pandemic and remains a popular way of accessing funding in later life. Analysis1 reveals that the value of new plans taken out in the first three months of this year totalled £1.07bn, with an average amount of £103,710 released in Q1, up 25% from £83,242 in Q1 2020.
Assess your options
Despite the growing choice of products and competitive rates, many people could be paying over the odds, unaware they can switch to a cheaper rate. Equity release brokers aren’t required by the Financial Conduct Authority (FCA) to keep in touch with borrowers once they’ve taken out a loan, or to inform them if there is an opportunity to switch. However, switching could save you a significant sum. A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.
Source: 1https://media.kg-cdn.co.uk/
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