Equity release rates are now lower than at the start of 2020

The average rate for lifetime mortgages has fallen to 4.21% as of 3 September 2020, which is only slightly higher than the lowest ever average rate seen since 2007, at 4.13% in March 2020. Lifetime mortgages have become a popular product for those looking to release tax-free cash from the equity tied up in their homes to help fund retirement, pay off existing mortgages, home improvements or pass the money down to relatives as an early inheritance. Also for those who already have lifetime mortgages, it is a great time to see if switching to a new provider would save them money, potentially in the thousands.

If you have any friends or family who are on a lifetime mortgage and would like us to research the market for them please do pass on our details. Or if you are over 55 and would like to see if a lifetime mortgage would be a good solution for you please do get in touch.

How much could you borrow with a lifetime mortgage?

The amount you can borrow is based on your age and the value of your home. The older you are the more a lender will lend. There are lots of different lenders in the market and each has a different loan to value calculation. Use our calculator to get an indication of what may be possible.

What are the lowest rates for a lifetime mortgage?

Rates start as low as 2.22% which is fixed for life and comes with a free valuation and completion fee of £500. The overall cost for comparison is 2.24% AER. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. For some that are coming to the end of their interest-only mortgage term with no means to repay a lifetime mortgage could be a great solution to avoid having to sell the home and downsize.

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

To use our interactive lifetime mortgage calculator please click here.

We list our services on Help & Advice. They have further reading on Equity Release: helpandadvice.co.uk/how-does-equity-release-work/

The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of Sentry Advice Limited. All comments are made in good faith, and neither Sentry Advice Limited nor the author will accept liability for them. No advice is given in any posting. Please contact your adviser for more information or advice.

Contact Form

  • This field is for validation purposes and should be left unchanged.