You are here: Home - Mortgages - Remortgage - News -

Equity release rates rise as deals are pulled from market

0
Written by: Lana Clements
04/05/2020
Lifetime mortgage rates have increased from record lows as the sector is hit by the impact of the coronavirus pandemic, analysis has revealed.

More than two-thirds of equity release lenders raised rates on select deals in April while the number of products available also dropped, according to Moneyfacts data.

The average equity release rate now stands at 4.34 per cent, from 4.20 per cent in March – the lowest it had reached since Moneyfacts’ records began in 2007.

The choice of deals has fallen from 423 in April to 357 in May.

Moneyfacts said this was in large part down to one provider condensing options by 60.

Rachel Springall from Moneyfacts said: “At first glance, a drop in the number of equity release deals month-on-month may seem concerning, but it is worth pointing out that most lenders in the lifetime mortgage market are still offering an abundance of choice.

“If more lenders consolidate their ranges though, then this could be more of a sign of restructuring their options to a target market. One area for consumers and advisers to monitor is the maximum loan-to-value bands, as these could tighten, however month-on-month there has thankfully been little change.”

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.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week