Average lifetime equity release rate rose to 5.1% in November, from its lowest level of 5.03% in July, the latest release from Moneyfacts.co.uk showed.
The report found that the number of deals available increased to 128 in November from 121 in the same month last year, but decreased from 157 in July 2018.
In November 2013, the average lifetime equity release rate stood at 6.1%, whilst the number of deals was 37.
Rachel Springall, finance expert at Moneyfacts, said that the equity release market has listened to the consumer demand for more flexibility, and, as a result, lifetime mortgages are becoming more popular.
She added: “Beyond the rates, lifetime mortgages may well be attractive to those who had considered downsizing, but are looking to avoid the hassle of moving and the costs involved, such as paying stamp duty.
“It is little wonder then that 82% of the lifetime mortgage market provide a free valuation. There are now more deals without a product fee too, however these deals still account for less than half the market share (41%).
“It is a misconception that equity release is aimed solely at the cash-poor or for those looking to plug the gap of their later life care costs. For instance, some consumers may be considering these products for gifting reasons.”