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Lifetime mortgages rise by a third

by: Mortgage Solutions
  • 15/03/2016
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Lifetime mortgages rise by a third
There's more choice for older homeowners who want to release equity from their property with twice as many equity release lifetime mortgages available than three years ago, and a third more than this time last year, according to Moneyfacts.

The financial information provider said that the equity release market is responding to increasing demand from elderly homeowners looking to unlock cash from their homes with a wider range of products and options.

And it found that there are now 70 different lifetime mortgage equity release deals available covering a wide range of options and loan-to-values (LTVs).

Higher LTV

Moneyfacts noted the development of a significant trend in which higher LTVs are increasingly offered, with 38 lifetime mortgage deals now offering LTVs at 50% or above (depending on the customer’s age and/or health). The maximum LTV now available is as high as 55.5%.

There has also been growth in the number of providers offering the option to make capital repayments, with five providers now offering this flexibility compared with just one provider two years ago. The option to pay off capital (typically 10% a year) has become more widely available and is expected to become a standard feature on equity release products.

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