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LEEDS, ENGLAND, January 20, 2013 /24-7PressRelease/ -- Research published recently by Moneyfacts.co.uk found that lifetime mortgage rates have dropped significantly over the past five years, offering existing customers the chance to switch to lower rates and take advantage of home equity release schemes.
The research showed that the average lifetime mortgage rate had plummeted from 7.23% in September 2007 to 6.64% in the third quarter of 2012.
Richard Eagling, pension expert at Moneyfacts.co.uk said:
"The fact that interest rates on equity release mortgages have been falling steadily is great news not only for homeowners considering equity release for the first time, but also for those who may now be able to switch their existing product to one with a lower interest rate."
Growing awareness of schemes and a squeeze on household incomes meant that almost one third of pensioners utilised equity release plans in the early half of 2012, compared with less than a quarter in the same period last year.
This equates to a jump in equity release schemes lending of around 10% from 2011 to 2012, and is the highest equity release mortgage-lending figure since 2008 (from statistics reported by the Equity Release Council).
Andrea Rozario, director general at the Equity Release Council, said:
"This indicates a renewed consumer interest in these products and is excellent news for the market. All the signs support the fact that people will need to factor in their housing equity when they plan for their retirement and the recent upsurge suggests this message is being heard."
If you have taken out an equity release product in the last five years and are thinking about a switch, you should seek independent and professional financial advice before moving.
It is important to consider individual circumstances and bear in mind that early repayment charges or new arrangement fees should also be taken into account when comparing the costs and benefits of equity release plans.
The Retirement Centre is an independent company, designed to help people aged over 50 to make the right financial decisions and enjoy their retirement. For more information on home equity release schemes, visit The Retirement Centre website: http://theretirementcentre.com/product/equity-release
For more information, call Dominic Fraser-Smith on 0113 320 5595 or email email@example.com
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