Will low savings rate prompt equity release uptake?

Equity release plans may be a good source of alternative funds as a fall in interest rates is likely to put pressure on people's personal finances.

Recent statistics made public by HSBC revealed that 5.5 million fixed-rate products with a total value of more than £110 billion are set to mature this year.

However, a decline in interest rates will lead to savers losing out when they re-invest their money, the report claimed.

There has been an average 3.01 per cent decrease in the rates of fixed products, reported HSBC.

Short-term products have been the worst hit, with products fixed for 18 months seeing a decline of 46 per cent while those fixed for three years fell by 42 per cent and two-year products saw rates decrease by 39 per cent.

Equity release advice is gaining importance as recent findings by Saga Equity Release show that 40 per cent of over 55s have used equity release to pay off their debts.

Equity release plans from Ashall Glover Financial Services

Posted by Partick Ashall