For those looking to supplement their retirement incomes there are several options. Recently there has been a surge in the numbers of those switching plans from existing equity release customers, due to record lows in equity release rates, say new figures. According to national specialist Bower Retirement, 45% of its advisers have seen a rise in clients reacting to reductions. Their analysis suggests that average rates have fallen by 0.7% in the past year and the number of fixed-rate deals has increased by almost 60% in the past two years.
Bower’s national study shows 22% of its advisers are reporting a substantial rise in the value of homes owned by customers while 55% say property values have increased slightly in the past year. Around a quarter of advisers say customers’ average property value is now more than £400,000.
“Equity release customers are benefiting from a virtuous circle with the record growth attracting more lenders who are cutting rates to compete and win business.” says Andrea Rozario, chief corporate officer at Bower Retirement. “Over the past few years rates have steadily fallen but lifetime mortgage rates are still being compared with mainstream mortgage rates which is a challenge for the industry and advisers.”
If you are thinking of supplementing your retirement income with equity release from your property it is good to look at all your options first. Enables experience IFAs in Bishop’s Stortford can help talk you through what will work best for you and your family.
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