Equity Release Latest News

Update on the Latest Equity Release Interest Rates

By Mark Gregory on June 3rd, 2013

Equity release interest rates have never shown as much flux as we are seeing today. There are probably two major reasons for this which is greater competitiveness between the lifetime mortgage lenders and lower long term interest rates.

 

Both factors combined have resulted in equity release interest rates seeing their lowest levels in their history. So, could this be the best time to latch on to one of these deals thereby consolidating a sub 6% interest rate for the rest of your life? Maybe.

 

There are two very good reasons for securing equity release interest rates at today’s levels. Firstly you will be charged less interest (which remember does compound), thus leaving more equity to use later on in life if required. The second reason would be your beneficiaries will benefit as they will potentially have a smaller equity release loan to repay at the end, when the house is eventually sold.

 

So the good news is that everyone is a winner at present. With equity release lending increasing as highlighted by the latest Equity Release Council statistics showing that Q1 of 2013 had a 17% increase in advances than Q1 for 2012.

 

There are many factors fuelling the new tide of interest in equity release schemes. We have seen that there are serious issues highlighted by the FCA report on interest only mortgages and people’s inability or shortfalls in repaying them. Many people are therefore looking at their options & those not wishing to downsize to resolve their shortfall are turning to equity release to settle the bills.

 

This could be in the form of the roll-up equity release where no monthly payments are required. However, if income is not an issue, then a retirement mortgage could be a better solution such as the range of interest only lifetime mortgage schemes we have available now from the likes of Stonehaven, more2life and Hodge Lifetime.

 

This is where expert equity release advice can help save you £1000’s in future potential interest charges. By selecting a company such as Equity Release Supermarket, you are accessing a range of interest rates & deals that are more competitive than standard deals on the market. It is wise therefore to always shop around to negotiate the best equity release deal possible.

 

Selection of the lowest equity release interest rates – June 2013

 

EQUITY RELEASE LENDER PRODUCT

INTEREST RATE

APR

Aviva Lifestyle Flexi Plan

From 5.43%*

5.60%*

Hodge Lifetime Flexible Repayment Plan

5.59%

5.99%

LV= Lump Sum Lifetime Mortgage

5.89%

6.10%

Just Retirement Roll-up Lifetime Mortgage

5.92%

6.20%

New Life Flexible Lifetime Mortgage

5.99%

6.30%

Stonehaven Interest Select Lite (interest only)

5.99%

6.40%

*Aviva equity release interest rates start from 5.42% & dependent on personal criteria.

 

The majority of these deals come with free valuations and cashback offers.

For a full list of equity rates & to compare deals click here.

 

For further information and associated offers with the above lifetime mortgage plans please contact the Equity Release Supermarket team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

These are lifetime mortgage plans. To understand the features and risks, ask for a personalised illustration.

 

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