Equity release rates have dropped below mainstream rates for the first time, research has revealed. The average equity release rates are now lower than the average standard variable rates for mainstream mortgage offerings.
The sector's trade body, Safe Home Income Plans, has calculated that the average interest rate to be 6.14 per cent, in contrast the average standard variable rate for the top 10 mainstream mortgage lenders is now 6.49 per cent. In addition, the interest rate for equity release remains fixed for the life of the loan, unlike mainstream products that can fluctuate in line with any changes in the base rate. But industry specialists have warned that rates ...