The average rate on a lifetime mortgage has fallen to 7.13%, down from 7.33% at the start of November, new data published by Moneyfacts has shown.

At the start of November last year by comparison, the average rate stood at 8.13%, its highest level since Moneyfacts’ records in November 2007.

Figures published by the retail financial product data provider showed that the choice of equity release deals now stands at 312, a total up significantly since the start of this year, when there were 179 in January.

Several lenders have cut rates in their ranges since the start of November and in terms of options, Legal & General Home Finance has over 80 deals available in its range.

Figures from the Equity Release Council for Q3 this year also indicated that customers unlocked £716m of property wealth in total, the busiest quarter of 2023 so far for lending and a total up 8% from £663m in Q2.

“A lifetime mortgage could be an option for borrowers to use some wealth from their home to support their retirement plans or help towards the cost of living,” said finance expert at Moneyfacts, Rachel Springall.

“Those weighing up their options may be pleased to find that lenders have been making rate reductions this month, and that the choice of deals is resilient. The choice of lifetime mortgages has been relatively stable over recent months, but there has been encouraging growth compared to the start of this year.”

Springall added: “Borrowers who are considering an equity release plan would be wise to seek independent financial advice to navigate the abundance of deals and choose the right one that suits their circumstances.

“Lifetime mortgages have several important factors to consider, such as associated fees, drawdown and, of course, the impact on passing inheritance to family members. Hopefully, we will see continued resilience in the market and more rate cuts as the year-end approaches for those looking to take out a lifetime mortgage.”

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