Lenders have been claiming for some time that rates will move upwards in the equity release market, and the most recent move came from GE Life.
It has increased the rate on its lifetime mortgage to 6.10% compound from 5.95%. This move increases the cost of borrowing a sum of 50,000 over 15 years from 118,983 to 121,535.
This is not necessarily an earth-shattering move in cost terms but it takes GE Life off of the top spot for interest rates which it held for most of 2006.
Just Retirement now holds the top spot with a rate of 5.99% annualised, claiming – in the week it announced its flotation on the Alternative Inv-estment Market – the top rate among single advance and drawdown providers.
This is an interesting time which sees two drawdown providers holding the top spots for rates across single or drawdown advances.
At the high LTV end of the market the usual suspects, Mortgage Express and New Life Mortgages, are holding their own.
New Life competes at the sl-ightly higher LTV end but both companies share the same rate of 6.35%, monthly compound. The main differential between the two is early repayment charges.