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Equity Release interest rates fall to an all-time low

30th October 2019

The Equity Release Council have released their autumn 2019 report and revealed that homeowners aged 55+ have released *£1.85 billion in equity from their homes in the first half of 2019.According to the report, the equity release industry continues to respond to consumer demand for more flexibility and choice with a growing product range and increasingly competitive rates.

More Choice Than Ever.
With the number of products available now at a record number of nearly 300 and close to double the amount available in 2018, the importance of people taking Independent Equity Release Advice is greater than ever.The market report shows the average equity release rate at a record low of 4.91%.  Over half (58%) of products offer a rate of 5% or less, while a fifth (21%) of products are priced at 4% or below – with these rates being fixed or capped at a maximum limit for the entire life of the loan.Some lower Loan to Value plans now offer fixed rates below 3%! An example of this is Legal and General’s Flexible Pink Lifetime Mortgage, which offers a Fixed Rate of 2.95% (3.5% APR) with a minimum property value of £100,000**.

Time To Switch?
If you have an existing Lifetime Mortgage now could be the right time to review it and see if you can switch to another plan at a lower interest rate. Switching could potentially save you ££££££’s! Book a FREE consultation with one of our experienced Independent Equity Release Advisors to see if switching can help save you money.

To Pay The Interest or Not To Pay The Interest?
Strong market competition and consumer demand have led to continued growth across all product features. Since the beginning of 2019, there has been an 80% increase in the number of products that allow regular interest payments to be made.  This feature allows people to control the amount of interest added to their plan, and with the ability to pay all the interest each year should they want. Other product areas that have continued to grow in 2019 include:


  • Products providing downsizing protection has doubled in 2019 – this feature allows customers to downsize and repay their loan without incurring an early repayment charge.
  • An 88% increase in products that provide Inheritance guarantees – giving customers the option to ring-fence part of their property’s value to leave behind as a guaranteed minimum inheritance.
  • An 87% increase in drawdown facilities – allowing customers to withdraw money in stages rather than taking a single amount all in one go. Interest is only applied when money is released and can be a cost-effective way to release equity.

Increased product choice is great for customers, but it is now more important than ever to speak to an experienced Independent Equity Release Adviser. Our Independent Equity Release Advisors have extensive experience in the Equity Release & Lifetime Mortgage market and will discuss all options available to you and answer any questions you may have. Importantly, if they feel that equity release is not right for you, they will tell you. If equity release is an option for consideration, we will discuss your objectives & requirements and gain an understanding of what is important to you. We then search the whole of the market and recommend the right plan for you.

Find out more about equity release – the process. *Equity Release Council, 2019, Autumn 2019 Market Report, viewed 24th September 2019 ** Interest Rates below 3% Air Platinum 25/9/2019.  *** Downsizing Option, Inheritance Guarantee & Drawdown subject to criteria. The information in this article is correct at the date of publication, and may be subject to change