Safe Home Income Plans (Ship), the equity release schemes trade body, has revealed that the average rate for equity release is considerably lower than that of a standard variable rate for a mainstream mortgage.
The equity release rate for the top 10 lenders is 6.39 per cent and the average rate for a standard variable rate mortgage, again with the top 10 lenders, is 7.32 per cent. Ship believes that with interest rates for equity release being relatively low, it has never been safer or cheaper to take out equity release.
Our view
It is true that there are many competitive and safer equity release schemes in the market today. To believe that there is no better time to consider a scheme is dangerous. Equity release can be a higher risk approach to raising capital and care needs to be taken when considering such as scheme. Contact us for advice.