Why equity release interest rates are still competitive
Britain hasn’t faced the current level of economic turmoil since the worldwide financial crash in 2008. Even the global pandemic didn’t affect the cost of borrowing, nor the cost of living to the same extent.
In the three months to September, Britain’s economy shrank by 0.2% in what is expected to be the beginning of a prolonged recession.
Increases to the Bank of England’s base rate, GILT rates and high levels of inflation have all played their role in the rate rises we’ve seen across the equity release market of late. As they have, it must be said, across the mainstream mortgage market, too.
So, how do equity release rates compare to those mainstream mortgage rates, and what can historical rate data tell us about what to expect in the remainder of Q4 2022, 2023 and beyond?