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Later Life Lending: Interest Rates

Retirement Planning

June 10, 2024•2 min read

How Do Equity Release Interest Rates Work?

Did you know that equity release and Later Life Lending interest rates are set through slightly different mechanisms to more traditional based borrowing. A large selection of Later Life Lending products are linked to lifetime fixed interest rates and therefore the modelling & investment vehicles used to gain the lender interest rate' is very much different.

The marker used for Later Life lending is typically the FTSE 15 year gilt yield linked to pension funds. That's because most of the money comes from this area.

So, just because the Daily Mail, other media outlets and Martin Lewis quote the bank of England interest rate moving downwards this doesn't mean Later Life lending products will see a huge shift & swing in interest rates over night.

Will Interest Rates Ever Become Lower?

There is somewhat a paralysis created in our world as people chase the wish of golden goose lower interest rates that 'they may miss out on in future'. We are not guaranteed to have low interest rates ever again. The world has changed and whilst I feel Lifetime mortgage interest rates, Retirement mortgage interest rates have a margin to reduce, this isn't going to happen anytime soon.

What Are The Current Interest Rates?

Some of the lowest interest rates offered in the Later Life Lending product market are currently set at the bank of England base rate amount.

Historically, although we have seen 2% Later Life Lending interest rate offers, 5% was the norm only 10 years ago and there are currently 5% interest rate deals available to our clients now.

Is Equity Release Right For Me?

The world requires people to move on from covid 19 & other issues, to borrow and spend otherwise every industry is impacted from the shop keeper to the CEO of a large company.

Choosing not to do something due to the loss of a potential 0.5% reduction in interest rates hardly seems the right thing to do:

(a) your not promised the future and

(b) there's always the potential to realign to lower later life lending interest rates when the optimum time arrives 'in the future'. Its like life, nothing is guaranteed....

Don't put off what you want to do, live your life and be free.

Craig Oliver

24 years in Equity Release & the majority of this served in an independent advice role. Winner of Best individual advisor at the 2018 ER Awards.

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Equity Release (Lifetime Mortgage) is a loan secured against your home. To understand the features and risks of equity release, please ask for a personalised illustration.

As a whole-of-market firm, we continue to offer a comprehensive range of equity release (lifetime mortgages) products from across the market.

If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the term of the debt and increasing the total amount you repay.

The actual interest rate and fees charged will depend upon your circumstances.

Unless you decide to go ahead, our service is at our cost. Only if your case completes would our advice fee of a maximum of £1,695 be payable. Other lender & solicitor fees may apply.

At One Stop 4 Equity Release Limited we are committed to providing our clients with expert later life financial advice tailored to their individual needs.

However, for Retirement Interest-Only (RIO) Mortgages, Term Interest-Only (TIO) Mortgages, and Fixed Rate Later Life Mortgages, we have chosen to work exclusively with LiveMore Mortgages. This means that while we consider all available equity release and later life lending options across multiple providers, for these specific products, we will only recommend solutions from LiveMore Mortgages.

If you proceed with a mortgage that requires payments to be made, your home maybe repossessed if you do not keep up repayments on your mortgage.

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