What Mortgage
No Result
View All Result
what MORTGAGE Awards
  • Login
  • Register
Add Listing
  • Home
  • News
  • Buy-to-Let
  • Homeowner’s Hub
  • Equity Release
  • wM Awards
  • First-Time Buyer
  • Home
  • News
  • Buy-to-Let
  • Homeowner’s Hub
  • Equity Release
  • wM Awards
  • First-Time Buyer
No Result
View All Result
What Mortgage
No Result
View All Result
Home News Equity release

Equity release: Fierce competition pushes down rates

by Kate Saines
June 11, 2019
Equity release: Fierce competition pushes down rates
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

That’s according to the latest market analysis from Moneyfacts.co.uk, which revealed the cost of lifetime mortgages had plunged to levels not seen since its records began.

Indeed, this month the average interest rate on both fixed and variable deals fell below 5% to a low of 4.99%.

This compares to the typical rate of 6.11% in June 2014 and 5.10% which was the average interest paid in June 2018.

Meanwhile, Moneyfacts revealed the number or products on the market has grown by nearly double in the last two years from 100 in June 2017 to 207 today. In just the last year the number of deals available has increased by more than 40.

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “The equity release market has evolved considerably over the years, with choice increasing and rates reducing as a result – the market has become much more accommodating to prospective borrowers.”

Related Articles

  • A day of celebration: The 31st annual what MORTGAGE Awards
    September 3, 2024
  • Interest-only mortgages: Why age is no barrier
    July 21, 2022
  • Homeowners urged to ‘use equity release for the right reasons’
    July 13, 2022
  • Rising numbers of divorcees using equity release
    July 6, 2022

Product fees

Moneyfacts explained the fact rates were going down was a sign competition in the market was rife. However, it warned anyone considering equity release that rates alone shouldn’t be the deciding factor when choosing a product.

In fact, 66% of the products on the market charge a product fee and Moneyfacts warned borrowers to look out for any upfront costs on deals they might be considering.

Flexibility

Equally, customers should consider how they would like to receive their funds. According to information from the Equity Release Council, drawdown – where cash is released bit-by-bit over time – is now more popular amongst borrowers than taking a lump sum.

Springall advised that by opting for drawdown, consumers could potentially save interest compared with taking a lump sum.

Meanwhile, Stuart Wilson, marketing director at equity release lender more 2 life, explained product innovation was ‘high on the agenda’ for many lenders and revealed there were some products available for rates as low as 3.32%.

But he thought lenders could go even further in their attempts to improve products and offer flexibility.

He said: “As more borrowers look to access the wealth tied up in their homes to meet their changing needs in retirement, a further push from lenders to design flexible products will be crucial to ensure they can cater to the customers of today.”

Tags: drawdownlifetime mortgageMoneyfactsproduct fees
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Our recommeded tools

Mortgage Calculators

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Mortgage Best Buys

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Mortgage Match

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Mortgage Search

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Comments 0

  1. alastair shields says:
    6 years ago

    A lot of interesting developments have been happening in the Equity Release market lately, especially the all time low interest rates which is great for people looking at this form of finance.

    We have seen a big uptake in new plans in our region which is encouraging and showing that the market is responding positively to this.

    Have bookmarked this for reference!

    Alastair Shields
    https://www.equityreleasescotland.org

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related Articles

  • A day of celebration: The 31st annual what MORTGAGE Awards
    September 3, 2024
  • Interest-only mortgages: Why age is no barrier
    July 21, 2022
  • Homeowners urged to ‘use equity release for the right reasons’
    July 13, 2022
  • Rising numbers of divorcees using equity release
    July 6, 2022

Newsletter

Register for our free weekly newsletter for all the latest mortgage news, tips, and features.

Sign Up

Polls

Will the increase in stamp duty on 1 April 2025 make you less likely to buy a property?

View Results

Loading ... Loading ...
  • Polls Archive
  • Advertise
  • Media Information 2018
  • Contact Us
  • About us
  • Terms & Conditions
  • Essential Links
  • Privacy

what Mortgage, Metropolis International Group Ltd © 2025
Registered in England no. 02916515

[MBM_Form id="284841"]

Buying a property, moving home or re-mortgaging? Sign up to our newsletter and marketing emails, and we'll send all the latest mortgage news, top tips, expert advice and what MORTGAGE Awards updates straight to your inbox.

I am a...*
First Name*
Email*
First Name*
Last Name*
Email*
Company
Job Title
I would like to receive...
[MBM_Form id="284841"]

Buying a property, moving home or re-mortgaging? Sign up to our newsletter and marketing emails, and we'll send all the latest mortgage news, top tips, expert advice and what MORTGAGE Awards updates straight to your inbox.

I am a...*
First Name*
Email*
First Name*
Last Name*
Email*
Company
Job Title
I would like to receive...
No Result
View All Result
  • Home
  • News
  • Buy-to-Let
  • Homeowner’s Hub
  • Equity Release
  • wM Awards
  • First-Time Buyer

what Mortgage, Metropolis International Group Ltd © 2025
Registered in England no. 02916515