You are here: Home - Retirement - Retiring now - News -

Cost of equity release at record low level

0
Written by: Christina Hoghton
19/04/2017
Equity release lenders have driven down fixed rates to new lows, as competition in the sector hots up, said Moneyfacts.

The financial information provider said the average fixed rate for equity release deals has fallen to a record low of 5.63%, while lenders are expanding the number of options on offer to meet growing consumer demand.

More choice

The number of fixed equity release options has increased by a third in just two years, up from 52 options in 2015 to 82 today, the highest recorded figure in eight years.

And average fixed rates have dropped from 6.33% to 5.63% in the last year alone.

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Consumers these days may well be facing a retirement shortfall or have failed to set aside enough cash for potential care fees, so an equity release deal could give them a vital sum to enable them to enjoy their later years much more comfortably.

“Thanks to increased choice, consumers must now be more diligent when comparing deals, so seeking independent financial advice may prove vital. The lowest rate isn’t always the best option when it comes to picking the right equity release plan, and consumers may well prioritise how much they can receive in a lump sum instead.”

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.

After an award-winning health insurance provider?

Winner of best online health care provider in the YourMoney.com Awards 2015

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

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

The amount you need to save a month for a comfortable retirement

Brits wanting a comfortable retirement with a household income of £26,000 need to save at least £131 a month f...
The amount you need to save a month for a comfortable retirement

Atom Bank pulls five-year 1.29% fixed rate mortgage

Atom Bank is pulling its five-year fixed rate mortgage priced at 1.29%, just seven days after launching the pr...
Atom Bank pulls five-year 1.29% fixed rate mortgage

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:
2291367-loans-guarantor
A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Close