If you are a homeowner 55 or older and have ever considered Equity Release as a way to unlock the value in your home but were worried about borrowing rates, it may be time to take a closer look.
Just as mortgage rates have fallen recently, so too have the rates on Equity Release.
According to Moneyfacts.co.uk, the average lifetime mortgage rate has dipped to 7.13% since the start of last month, down from 7.33%.
This is encouraging news, especially for those who are looking for ways to release money to fund their retirement or help cover the rising cost of living.
In fact, the Equity Release Council shows that the third quarter of 2023 was the busiest quarter for lending, with homeowners unlocking £716m of property wealth, which is an 8% increase from the year before.
But, even with the lower rates, this doesn’t automatically mean it’s the perfect fit for everyone.
It’s important that you keep in mind that as the demand for Equity Release continues to shift, the dynamics might affect how much you pay. Additionally, there are fees to factor in and, not to mention, the potential impact this could have on what you leave behind for your loved ones.
For those simply looking to release a small portion of your money, many borrowers are leaning towards flexible options such as drawdown plans. But with everything in life, it’s important to weigh out the positives and negatives carefully.
The right choice for you depends entirely on your unique circumstances and what you are hoping to achieve. What is this money for? If you take it now, what are the implications for the future?
So, if you are thinking that Equity Release is a lifeline for unlocking your home’s worth due to the recent rate drops, it’s important that you do so wisely. If, however, you aren’t comfortable deciding if this is the right option for you or your family, our Equity Release specialists are here to help.
You can also try our free Equity Release Calculator to see how much you could release.
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