Interest Rate War Stokes Up the Equity Release Market

Mark Gregory

Checked for accuracy and updated on 31 October 2023

Equity Release Supermarket are currently experiencing the largest number of equity release interest rate reductions that have ever been witnessed in the industry. With lifetime mortgage rates now starting below 3% for the first time ever, and fixed rates below 4%, we look at the effect this can have on homeowners over the age of 55, who are maybe considering 'is now the best time to apply for a lifetime mortgage?'.

Freephone 0800 678 5074 September 2016

There seems to be a number of economic factors stacking up against retirees recently, from annuities to pension complications to interest rate reductions, all resulting in savers from this age group being hit financially. However, one aspect that has been very positive over the last few weeks is that four of the most well-known equity release lenders have privately being going to war with their interest rates in order to maintain market share. Increased competition for a growing market has seen the big lenders take action. The result is more competitive equity release plans that Equity Release Supermarket can recommend for its customers. Here we’ll look at some of the recent reductions and what they could mean for you...

Mark Gregory, Founder

Which products have been improved? We have seen lenders across the board reduce their interest rates on key products including:

Reduced interest for borrowers are always welcoming & provide a great opportunity for people considering equity release: -

1.	Roll-up plans will not accrue as much interest over the longer term

2.	Servicing the lifetime mortgage via repayments becomes cheaper

3.	Existing schemes could be remortgaged to a new lower interest rate, thus saving interest and helping ultimate beneficiaries

4.	Now comparible to residential mortgages, these new rates can help interest only prisoners facilitate a switch to a lifetime mortgage deal

All of this is great news for people considering equity release, however we will always advise customers to be cautious before jumping in to an equity release deal based on interest rates alone.

Getting the right advice There are many factors that make equity release the great product it is, but these factors suit and affect everyone differently depending on their own individual situation. Alternatives should also be considered and discussed with the family. The choice of product is very much reliant upon your current financial position and future plans to include the flexibility and options you require and avoid any unnecessary penalties. This is why people considering equity release should always seek professional advice from regulated and experienced advisers. Equity Release Supermarket advisers provide independent equity release advice. They are fully qualified and regulated by the Financial Conduct Authority. As a business we also adhere to the Equity Release Council Code of Conduct ensuring the advice our customers receive is reliable and of the best quality. All our advisers pride themselves on taking time to listen to their customers, thus ensuring full understanding of their circumstances and enabling a recommendation for the best equity release plan for them. To find your local adviser and learn more about them please visit our market leading website - EquityReleaseSupermarket.com

Contact us now on 0800 678 5074 to book your FREE initial consultation and find out if equity release could be right for you.

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There will be a fee for lifetime mortgage advice. This will depend on your circumstances, but we estimate it to be £995. These are lifetime mortgage plans. To understand their features and risks, ask for a personalised illustration.