Latest research by Moneyfacts.co.uk has shown average rates for lifetime mortgage products have fallen significantly over the past five years, as sales of equity release plans rise.
Considered to be the most popular form of equity release, lifetime mortgage rates have reduced from 7.23% in September 2007 to 6.64% today.
A growing number of homeowners are using equity release to assist family members to purchase their first homes, by borrowing money based on the value of their property.
It is believed 31% of pensioners used equity release during the first half of this year, significantly higher than 23% recorded in the same period last year.
Richard Eagling, pension expert at Moneyfacts.co.uk, said: "The last few years have seen much greater awareness amongst consumers of the potential of equity release to supplement monthly incomes that have been squeezed by high inflation, falling annuity rates and disappointing pension fund returns.
"The fact that interest rates on equity release lifetime 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.
"Anyone who has taken out an equity release product in the last five years may want to seek professional financial advice as to whether a switch is a realistic option, especially as any early repayment charges or new arrangement fees will need to be considered," he concluded.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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