In the continued success of the new Advice Guru website, our Managing Director, Stuart Powell was interviewed this week. This was for an article about modern Later Life Lending. Stuart spoke with Helen Crane, Deputy Editor of the Mail Online to promote key aspects of Later Life Lending. Topics included: modern Equity Release, how to calculate Equity Release and Later Life Lending interest rates when releasing funds from your property,
New products
The Daily Mail had taken an interest in recent Podcasts launched by Advice Guru recently. These included topics such as ‘How Does Equity Release Work’ and ‘how to calculate Equity Release’. The article which we have linked to here focuses on the new Later Life Lending products which enable customer to pay the interest on their loan. In fact some of these products have mandatory payments for a defined period.
The traditional way to calculate equity release interest over the term of the mortgage has been to display how the interest compounds from year to year. However, the introduction of new products that enable the releasing of equity and customers to pay the interest monthly has been a game changer.
Discounts on interest rates
Lenders such as Standard Life Home Finance also allow discounts of up to 0.75% on the fixed interest rates. Modern Equity Release seems to be entering a new phase. Lenders are providing great incentives for customers to pay the interest when raising funds from their property. Ensuring that an interest rate is reduced by the customer paying the monthly interest, this may well grow the market.
Discounts for EPC rating
With many homeowners asking the questions about their Later Life Lending options on a regular basis, the traditional products have in many cases, been updated. Equity Release interest rates have been less focused on a ‘one size fits all’ rate. Innovation leading to rates being reduced if a property has an EPC rating of D or above. This Royal London innovation is yet another way in which modern products are changing to the benefit of a new cohort of customers.
Changing for the better
The Later Life Lending market in 2024 is certainly changing for the better. More options for customers to have lower interest rates and lower compounded interest will surely make the market grow. Traditional criticisms of Equity Release have been considered by lenders and innovations used to eliminate many of them.
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