Equity release rates hit new record lows

Equity release rates have fallen to new record lows, according to research from Defaqto.

The lowest interest rate available today is 2.84% from more2life, at age 65. Average rates have plummeted in the last 18 months, falling from 5.4% for customers aged 65 to 4.55% today.

Retirement interest-only rates have also dropped and the lowest rate available today is 2.79% from Marsden Building Society.

Brian Brown, consumer finance expert at Defaqto said, “Equity Release has been criticised for being expensive and inflexible in the past, but with historically low rates and portable loans, they are a much more viable option for some borrowers.”