Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of lifetime mortgage customers who have switched to plans with lower interest rates since 2015.
Lifetime mortgages are a form of equity release scheme which may be an appropriate option for some homeowners wishing to withdraw equity while remaining in their home. Consumers considering equity release should seek independent financial advice to help ensure that the product is suitable for their individual needs.
Industry analysis indicates that the volume of equity release customers switching to a new deal increased significantly in 2021 with around 5,000 remortgage cases, compared to around 2,000 in 2020. Borrowers seeking to remortgage an equity release product are encouraged to seek advice and to be mindful of any factors, such as early repayment charges, that may affect their decision to switch.