Competition amongst equity release lenders has clearly intensified in recent years and it is now at a point where perspective equity release customers have never been better served in terms of choice and interest rates, according to the latest research by Moneyfacts.

In fact, there are now a total of 75 different lifetime mortgage equity release deals available, covering a wide spread of options and loan-to-values (LTVs), an increase of 63% on the number of deals available a year ago and more than double the total number three years ago.

A notable trend has been the increase in the number of equity release variable rate deals available, which has more than tripled from 4 to 14 over the last 12 months. This has been driven by the arrival of OneFamily into the equity release market with its range of lifetime mortgages, including variable rates linked to the Consumer Price Index.

Richard Eagling, Editor at Investment Life & Pensions Moneyfacts said:

“It’s clear to see that the equity release sector is responding to the greater demand from elderly homeowners looking to unlock cash from their homes by offering a more diverse range of products and options.

“The growing trend of offering higher LTVs has continued with well over half (57%) of current lifetime mortgage deals offering LTVs at 50% or above (depending on the customer’s age and/or health), compared with just a fifth of deals five years ago.

“A spate of interest rate reductions has made the idea of utilising equity release even more attractive since the Bank of England cut base rate to 0.25%. Since the start of August the average interest rate on a fixed lifetime mortgage has fallen from 6.15% to an all-time low of 5.66%, with some fixed rates falling below 4.00%.

“Key to the diversity that we are seeing in terms of equity release products and lower interest rates has been intensifying competition, with several new providers having already entered the sector, and others preparing to enter, it’s worthwhile for perspective applicants to consider their options.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.