You are here: Home - Mortgages -

Equity release rates fall

0
Written by:
02/10/2012
Lifetime mortgage rates have fallen significantly over the past five years and present an opportunity for existing customers to switch to lower interest rates, research finds.

Moneyfacts.co.uk found on average, lifetime mortgage rates have tumbled from 7.23% in September 2007 to 6.64% today, as sales of plans have increased.

Richard Eagling, pension expert at Moneyfacts.co.uk said: “The fact that interest rates on equity release lifetime mortgages have been falling steadily is great news not only for homeowners considering equity release for the first time, but also for those who may now be able to switch their existing product to one with a lower interest rate.”

The research also suggests a third (31%) of pensioners used equity release during the first half of this year. This compares to 23% in the same period last year.

Eagling added: “The last few years have seen much greater awareness amongst consumers of the potential of equity release to supplement monthly incomes that have been squeezed by high inflation, falling annuity rates and disappointing pension fund returns.

“Anyone who has taken out an equity release product in the last five years may want to seek professional financial advice as to whether a switch is a realistic option, especially as any early repayment charges or new arrangement fees will need to be considered.”

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Ex-cons reveal exactly what would stop them breaking into your car and home

With four in ten thefts committed by opportunists, ex-cons reveal what security devices and factors would stop...
Ex-cons reveal exactly what would stop them breaking into your car and home

Woodford’s new income fund drops out of top traded list

Star manager Neil Woodford’s Income Focus fund has dropped out of a platform’s top traded list, just five mont...
Woodford’s new income fund drops out of top traded list

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.
Tesco expected to post significant write-offs

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2213695-ed-balls-shadow-chancellor
Balls calls for 100,000 new homes

Shadow Chancellor Ed Balls has called for 100,000 new affordable homes to be built using billions of pounds from the...

Close