What are the typical AER interest rates for lifetime mortgages
As of April 2025, the typical Annual Equivalent Rates (AER) for lifetime mortgages in the UK vary significantly based on several factors, including age, property value, and the specific lender's conditions. Here's a detailed summary of the current interest rates available for a 66-year-old considering borrowing 33% of their property's value:
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Lowest Rates: The lowest equity release interest rate at this time is reported to be around 5.79% fixed for life. Some sources indicate rates as low as 5.94% (MER) and 6.25% from various providers (sources: Money Release, Later Life Planning).
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Rate Range: The overall range for lifetime mortgage interest rates currently extends from approximately 5% to 8.89%, as outlined in various analyses (source: MoneySavingGuru, Every Investor). This indicates a competitive market where rates can vary depending on individual circumstances.
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Market Trends: The ongoing demand for equity release solutions has increased due to rising property prices, and homeowners are continuing to explore their options to unlock property equity. This trend signifies a proactive approach among seniors looking to leverage their home value (source: LV Adviser).
In conclusion, a 66-year-old considering a lifetime mortgage and borrowing 33% of their property’s value can expect interest rates ranging from about 5.79% to 8.89%, depending on specifics such as health and the lender's terms. It's advisable to review varied options and consult with a financial advisor to determine the best rate available for one's unique situation.
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