Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 28 February 2022 to Question 125543, on Mortgages, what estimate he has made of the total number of lifetime mortgage customers who could benefit from switching to plans on lower interest rates but have not yet done so.

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. The interest rates charged on lifetime mortgage products are typically fixed for the duration of the loan term which provides certainty for borrowers.

Whether it is in a consumer’s best interest to switch their lifetime mortgage plan will depend on their individual circumstances. As with any long-term financial product, we encourage borrowers to regularly consider their options, and they may wish to seek advice to ensure that any changes to their loan are appropriate for their individual circumstances. Borrowers should also be mindful of any factors, such as early repayment charges, that may affect their decision to switch.