Increasing numbers of older borrowers looking to release equity from their homes have led to more equity release rates and increased competition across the market.
Over the last five years, the number of equity release products has risen from 40 in 2014 to more than 200 on the market today, according to research from Moneyfacts.co.uk.
Data from Moneyfacts.co.uk shows “the average overall interest rate for lifetime equity release deals has fallen slightly year-on-year, from 5.27% in February 2018 to 5.24% today. The rates have risen since July 2018, when the average overall rate was its lowest recorded at 5.04%. Borrowers can secure a fixed deal for less than 4% if they shop around.”
Increased levels of competition has helped to improve the equity release market and there are more flexible products. Some of them allow overpayments to reduce the amount of interest charged.
Aaron Strutt, product director at Trinity Financial, says: "It is not always necessary to take an equity release mortgage because many of the lenders have increased their maximum age limits and they are actively looking to lend to older borrowers. There are also more Retirement Interest Only mortgages which provide a bridge between standard mortgages and equity release mortgages.
Trinity Financial has an equity release specialist and he will only provide equity release or lifetime products if a standard mortgage is not available. Call 020 7016 0793 to speak to Jed Newton or email him by clicking here.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.
There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £495 at application and £995 on completion of the mortgage.