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Tables are turned in the equity release stakes

After a certain amount of jockeying for position – and following Sto-nehaven’s confirmed membership of Safe Home Income Plans – the league tables for single advance and drawdown lenders now line up somewhat differently than before.

Apologies to Nat-ional Counties, which did not feature in my previous rundown of the market. Its 10-year drawdown deal gives it a prominent position in the table.

GE Life raised its interest rate a few weeks ago but other lenders have not followed suit, despite predictions that this would be the case. This is good news for equity release consumers at a time when mainstream borrowers on variable rate derivatives are licking their wounds and preparing for the next increase, which is likely to happen in the new year – probably by burying their heads firmly in the sand.

Fixed rate options from leading providers of equity release products are now sitting comfortably below mainstream SVRs.

This situation having been sustained for almost a year, it can do nothing but help reassure borrowers that the equity release market is maintaining a lower interest rate profile.

Just Retirement dominates the tables and continues to hold top spot with its rate of 5.99% annual, which applies to single or drawdown.

The high LTV field still sees Mortgage Express and New Life Mortgages taking the lead.

At different ages, the winner in the high LTV stake varies as rate becomes secon-dary to the advance available.

Cost of borrowing £50,000 overLender Headline rate Annualised rate10 Years 20 YearsJust Retirement5.99% 5.99% £89,458 £160,054Standard Life6.06% 6.06% £90,051 £162,182GE Life6.10% 6.10% £90,391 £163,410Cost of borrowing £50,000 overLender Headline rate Annualised rate10 Years 20 YearsJust Retirement5.99% 5.99% £89,458 £89,458Standard Life6.06% 6.06% £90,051 £162,182National Counties5.99% 6.16% £90,879 £165,181Cost of borrowing £50,000 overLender Headline rate Annualised rate10 Years 20 YearsMortgage Express6.35% 6.54% £94,193 £177,447New Life Mortgages6.35% 6.54% £94,193 £177,447Stonehaven6.49% 6.69% £95,514 £182,459


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