More equity release borrowers ask about rate switching
Equity release customers are increasingly contacting advisers to see if they can get a better deal as rates continue to fall, Bower Retirement research indicates.
Nearly half (45%) of Bower advisers have experienced an inquiry of this kind after typical rates dropped by 0.7% in the past year alone and with the number of fixed rate deals increasing by 60% in the past two years.
However two in five (39%) advisers think more rate cuts are needed, with two thirds (67%) wanting lenders to follow the likes of Legal & General by entering the market and stirring up competition.
Andrea Rozario, chief corporate officer at Bower Retirement said: “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.
“Existing customers can benefit too but it is vital they get independent advice as any savings from lower rates need to be balanced against potential early redemption charges.
“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.”