Equity-release rates drop below 5%
10 July 2019
Movements in the over-55 equity release market
The latest figures from Moneyfacts reveal that the average equity release interest rate has dropped to 4.99%, a record low since it started tracking the data. Pushing the percentage down have been earlier drops in the equity release market, with the average rate standing at 5.10% in June 2018, down from 6.11% on June 2014. Also significant is the competitive market, offering a wealth of consumer choice; according to Moneyfacts, there are currently 207 equity release lifetime mortgages available, as opposed to just 48 in 2014.
What this means for over-55 clients looking for equity release
With equity release interest rates at their lowest levels in 12 years, there are some very competitive deals for releasing equity from your home to help you realise your dreams, whether you want to install a new kitchen or bathroom or go on the holiday of a lifetime.
However, with so much choice available, it’s never been more important for those aged over 55 seeking equity release to understand all their options and be aware of the pros and cons. “We’re talking about a market that’s seen growth of 330% since 2014, and it’s about taking a 360-degree view of what’s out there,” explains director of 55+ Equity Release, Jan Johnson. “It’s not just about what rates are on offer. Lenders are getting more imaginative in terms of the sort of products they’re offering and the flexibility these may provide.”
Expert over-55 equity release advice to help you understand your options
“Customers need to know which product might be most suitable for them – the advantages of a drawdown option versus a lump sum, or vice versa. They also need to know about any upfront charges that might be involved, what sort of interest repayments they could make, if they choose to, and what sort of protection is available for downsizing or inheritance, for instance,” advises Jan Johnson. “It’s all about explaining the products clearly and simply to clients, highlighting the personal implications for each individual case – and possibly not just for them, but for their children and grandchildren too.
“That’s where specialists such as the team here at 55+ Equity Release can prove invaluable. As award-winning experts in this area, we can provide our customers with the guidance and advice they need to make the choice that feels right for them.”
In what can seem a very complicated world, our over 55 equity release experts will demystify what’s on offer and the process behind applying for it to help you realise your dreams.