Equity release allows those who are asset rich but cash poor to draw on their home's value in their retirement. There is no need to make monthly payments with equity release, as there is with a mortgage, but this can lead to a downside as interest rolls up over the years. That means that equity release leaves less for to your loved ones as an inheritance, so it may be worth looking at alternative ways to raise income. Read our guide to what you must know.
Last year one in every £90 spent by retired people domestically was a result of equity release, new research shows.
The number of equity release mortgages on offer has nearly tripled in the past year, hitting a new record high of 1,557.
The lifetime mortgage market is 'awash with rate cuts' and the number of available products is at an all-time high. So is now the time for over-55s to consider taking cash out of their home?
We revealed last year how most equity release borrowers were unaware they could save tens of thousands of pounds over the lifetime of their loan by moving to a cheaper interest rate. Since then, switching numbers have soared to record levels - with industry insiders saying our articles opened the flood gates. Just 1,930 equity release remortgages took place in 2020 according to analysis by broker Key.
After years of falling prices, equity release interest rates are creeping up ahead of an expected increase to the Bank of England's base rate.
The guide takes a look at all the pension saving options and how you can mix these with other income sources.
Average rate on an equity release mortgage is now 4.33%, though cheaper plans are available with interest as low as 2.85%.
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