A recent report has revealed a significant drop in the average rates paid by lifetime mortgage borrowers, being 41% lower than 2015. The report revealed how later life lending customers paid an average of 3.4% during 2020, down from 5.79% in 2015!

We highlighted in our previous article about how, for the over 55s, later life lending is an extremely flexible way to release money from your home and with rates this low, it is an excellent time to benefit from the options later life lending gives.

In addition to low rates for new later life lending products, there is a significant saving available for those wishing to remortgage.

These calculations are based on data released through a Freedom of Information request submitted to the FCA and it’s probably no surprise that the number of later life lending products sold has risen by 74% in five years, from 23,728 in 2015 to 41,286 in 2020.

One example from Responsible Life highlighted how, one 82-year-old pensioner, who switched lender is on track to save £16,800 (£175 per month) over the next eight years and £37,000 if he lives to the age of 95!

Responsible Life executive chairman Steve Wilkie explained that:

“Retirees have been hoovering up improved rates over the past few years as the popularity of lifetime mortgages has exploded.”

“This FCA data confirms that, not only have advertised rates dropped, but the real rates customers have been able to secure have been collapsing too.”

“This proves the later life lending market’s progress on rates isn’t just window dressing.”

“Older homeowners have been able to feel the benefit of falling rates in their thousands and are voting with their feet when it comes to financial planning in retirement.”

So, what do these falling rates mean for you?

Well, quite simply put, they mean that if you have an later life lending product, it would certainly be worth getting in touch with our team to review it and see whether you could make a saving by remortgaging.

For those looking to release monies locked up in a property, falling rates mean that now is an excellent time to look into how later life lending could work for you!

Equity release refers to home reversion plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.

You can either call us on 01322 553282 or contact us online.