Borrower who a Equity release Plan a few years ago could save you money switching to a new plan, as new research shows stock release rates have dropped significantly over the past five years.
Earlier this week we reported that over the past five years the average rate for stock release plans has decreased by 2.08%, from 6.15% in April 2016 to 4.07% on April 26, 2021. In addition, the number of stock releases has changed over the same period Plans have increased significantly, from 66 to a record high of 510.
While the increase in choice and the decrease in the average interest rate is good news for those currently considering a stock release, it could also mean that those who have had a stock release plan in the past could potentially lower their interest rate by switching to a plan . Two years ago, in April 2019, the average equity release rate was 5.09%, 1.02% above the average rate available in April 2021.
In addition, with more choices in the marketplace, stock-released borrowers may be able to switch to a plan that better suits their credit needs today. For example, borrowers can now choose plans to repay some of the money they borrowed or make interest repayments. For those considering switching plans, it may be worth speaking to a stock release broker who is able to provide the right options for their unique needs.
