Consumers warned about equity release rates

The website which has just launched the first consumer comparison service for lifetime mortgage products, listing 48 from around 18 providers says there is a great discrepancy in the full range of rates offered on the market. It claims the average annual percentage rate (Apr) charged is 6.95% with a range from the lowest at 5.7% to as high as 8.9% – a difference of 3.2%. Sean Gardner, MoneyExpert.com’s chief executive, says the spread of interest rates obviously has a major effect on the amount of interest a homeowner will pay. Someone releasing £50,000 from their home would pay annual ...