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.”
Victoria Hartley is contributing editor at Mortgage Solutions, Specialist Lending Solutions, Your Money and Your Mortgage at London-based publishing company AE3 Media.
She has an MA in Radio from Goldsmiths after gaining a 2:1 in a Comparative American Studies BA at Warwick University. She also holds a TEFL qualification and taught overseas in Mexico and Japan from 1994 to 1997.
Her role includes editorial oversight of the news, analysis and features, event content management and strategic and editorial consultancy for the AE3 Media group. She is an experienced video, broadcast and live-event host and regularly chairs web and podcast debates and interviews.
Multiple award nominations have resulted in two wins: Santander Media Awards, trade journalist of the year and Headlinemoney Awards, mortgage journalist of the year (B2B). Here is one of the award-winning pieces: https://www.mortgagesolutions.co.uk/news/2011/07/21/exclusive-tale-bailey-fraud-witness/
Previous roles include editorships of Mortgage Solutions, consumer title What Mortgage and trade title Credit Today as well as a stint freelancing for a variety of outlets including The Guardian and Which? Money.