lovely-house-pic-3

How many equity release products are there? and what are the rates?

Aaron Strutt Image

The number of equity release deals on the market has more than doubled in two years as lenders improve their propositions.

According to the data company Moneyfacts, there are currently 698 equity release deals, up from 480 in August 2020 and 383 in August 2019. 

Moneyfacts states the average interest rate on new equity release loans increased from 4.13% in August last year to 4.32% at the start of this month. The provider also says the average maximum loan-to-value for equity release has risen to 50%.

Jed Newton, director and equity release specialist at Trinity Financial, says: “The average equity release rates vary massively depending on how much equity older borrowers have in their property. There are rates as high as 5% for those raising funds with the highest loan-to-values, reducing to 2.5% with the most equity. 

“Equity release has increased in popularity as the products have got better. More older borrowers can make 10% overpayments and avoid one of the biggest pitfalls of equity release, which is the roll-up of interest. The average age of my equity release clients is 75, so they are typically between 65 and 85."

Why are older borrowers using equity release? 

Jed highlights the main reasons borrowers use equity release and they include: repaying interest-only mortgages, gifting funds, providing access to cash for home improvements and supplementing a shortfall in retirement income.

He says it is safe to say there are going to be more people that need and want equity release in the future. 

Contact Jed Newton at Trinity Financial on 020 7016 0790 to secure an equity release mortgage or book a consultation with him

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. 

CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE. 

There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £495 at application and £995 on completion of the mortgage. 

Get Started

Get started today

Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.

Google Reviews
Trustpilot
Book a Consultation Talk to an Expert
As seen in
Sunday Times Telegraph Financial Times BBC News The Express The Times