Mortgage: Equity release rates drop as demand rises – ‘no signs of easing’ as the UK ages


According to their Autumn 2020 Market Report, average rates for equity release products reached record lows of 4.11 percent in July 2020, with over half of products offering a rate of four percent or lower, and a fifth offering rates below three percent.

On top of this, there has been a five percent reduction in product numbers from 401 and 379 between January and July 2020.

Coronavirus has undoubtedly had an impact on the market but David Burrowes, the Chairman of the Equity Release Council, expressed optimism for the future: “The unprecedented uncertainty of the first six months of 2020 has affected households and businesses alike, with the equity release market no exception.

“While pent-up demand in Q1 led to a strong first quarter, the impact of Covid-19 and the lockdown dominated Q2 before showing initial signs of recovery in June.





READ SOURCE

READ  Banks use AI everywhere, from chatbots to validating cheques

LEAVE A REPLY

Please enter your comment!
Please enter your name here