The number of equity release products on the market is the highest it has ever been, with rates over two percentage points lower than five years ago.
Data1 shows that the number of equity release products now exceeds 500 – the highest on record. The analysis also reveals that the maximum available LTV has remained constant over the past five years, standing at 49%.
A competitive market
And, with a report from the Equity Release Council2 revealing that customers took out 19% more lifetime mortgages in the second half of 2020 than in the first half of the year, the market is proving resilient to the impact of the pandemic, showing that equity release is still a popular method of accessing funding in later life.
Assess your options
Despite growing choice and competitive rates, many equity release customers are paying too much because they are unaware they can switch to a cheaper rate. This is likely due to the fact that equity release brokers aren’t required by the Financial Conduct Authority to keep in touch with borrowers once they’ve taken out a loan, or to inform them if there is an opportunity to switch. However, switching could save you a significant sum.
2Equity Release Council, 2021
Equity released from your home will be secured against it.