Equity release rates have been on a positive trajectory recently, presenting a potentially favourable opportunity for homeowners considering this option. As of April 2025, the average interest rate for home equity loans stands at approximately 8.40%, with a typical range between 8.04% and 9.24%.
This stability in rates is partly influenced by the Federal Reserve’s monetary policies. While there was a series of rate cuts in late 2024, leading to a decline in home equity loan rates, experts anticipate that any further reductions will be more measured in 2025 . However, recent developments, such as the U.S. administration’s announcement of significant tariffs, have introduced a degree of market volatility. This unpredictability could impact future interest rate trends, making it a crucial time for homeowners to stay informed.
Given these circumstances, consulting with a qualified equity release adviser is highly recommended. They can provide personalised guidance, helping you navigate current rates and assess how recent economic shifts might influence your decision to release equity from your property. Engaging with an expert ensures that you make an informed choice.
Sources:
https://www.moneysupermarket.com/mortgages/equity-release/
https://www.bankrate.com/home-equity/
