Pure Retirement has launched an Insight blog, with the intention to help advisers best serve their customers.
Its blog is designed to provide commentary on key market trends and considerations for the wider market, and has recently been expanded to share the company’s expert cross-business knowledge.
Gavin Hancock, underwriting team manager examines the adaptations in underwriting processes amid challenging trading conditions and highlights new best practices when processing lifetime mortgage cases.
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“Equity release is becoming more mainstream, people understand it much more than they did 10 years ago. It’s a way of releasing cash from your house without having to move.”
Growing numbers of older homeowners use the loans as a way of borrowing money against the value of their properties.
However, homeowners who took out an equity release loan six or more years ago could be on an historic rate of around 6 per cent, which was standard for conventional mortgages around that time, according to Mr Auckland.
The decline in interest rates has left people who were on products which were once regarded as offering an acceptable rate facing a raw deal.
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This week we published research that found the number of equity release deals available on the market is at a record high of 510. As a result those considering equity release have more options to choose from than ever before. Saying this, those considering this option should still be aware of the long-term impact it can have on finances and must speak to an independent financial adviser before taking out a plan.
To help homeowners consider equity release to evaluate the deals on the market below we have highlighted some of the most competitive rates that were available during April.
Source: Moneyfacts.co.uk
Moneyfacts.co.uk finance expert Rachel Springall says: “It’s great to see lenders working hard to cater to borrower demand as we reveal the number of equity release options have reached levels never seen before. There are now over 500 deals available and since the start of this month, lenders have continued to launch and reprice their ranges. The average rate is now 4.07%, so it has increased slightly from the record low seen in March 2021 of 3.86%, but predominantly we are seeing lenders reduce rates this month.
“Those borrowers considering releasing wealth out of their home will be pleased to see that the maximum LTV has remained stable over the years, currently at an average of 49%, with the most notable change in the market being the rise in choice and more attractive interest rates on offer. Over the past two years, the average equity release rate has dropped by 1.02% and there are 323 more options on the market to assess, and overall the market
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