"Advisers remain optimistic in the sector and lenders have made it clear that they are prepared to compete and tailor their ranges to suit borrower demand."
The number of equity release options stands at a record high as providers expand and tailor their ranges to cater to demand.
Several lenders cut their lifetime mortgage rates in July, with the average rate now standing at 4.32%, compared to 4.92% in 2019.
The maximum LTV available across the market stands at 50%, compared to 49% a year ago and 46% two years ago.
Over the next decade, the amount of equity released per year is set to increase from £3.7bn in 2021 to £6.4bn, according to research from more2life.
Rachel Springall, finance expert at Moneyfacts, said: “The equity release market has remained resilient during 2021 and, in fact, business is booming and is expected to grow in the years to come. Advisers remain optimistic in the sector and lenders have made it clear that they are prepared to compete and tailor their ranges to suit borrower demand.
“There was a mix of changes to products in the lifetime mortgage market last month, but, positively, most lenders made rate reductions to their range, some several times over. The average rate across the market has risen slightly over the past year from 4.13% to 4.32%, however, upon further scrutiny of the deals, the average maximum LTV rose to 50% and with higher LTV lending you would typically see higher rates. Several lenders now offer a higher max LTV on average year-on-year and the growth in options among many lenders demonstrates how they have adapted to accommodate demand and why finding the best deal does require good advice to navigate the growing choice available.
“A recent study by more2life revealed that 94% of advisers are confident in the equity release market over the next 12 months and 54% named product innovation as an important factor. The boom in product choice can provide a deal more tailored to someone’s circumstances, and lenders have shown their commitment to adapt their ranges. At present, Just currently has the largest range with over 300 deals, which rose due to its introduction of a fixed early repayment option, which doubled its range. more2life, Legal & General Home Finance and Pure Retirement are the next brands to offer the largest volumes of options to navigate."
