Equity release prices have been on the increase since the beginning of this year, analysis from Moneyfacts shows.

Data shows that the average rate for all equity release products – of both the fixed and variable type – moved from 3.86% in March 2021 to 4.10% in January 2022.

This has since risen to 4.33%. At the same time, the number of overall deals rose, from 492 in March 2021 to 661 at the start of this year, and then 665 as of this month.

And the average maximum LTV rose from 48% to 51% from March 2021 to January 2022 and has stayed at that level since.

The only equity release lender to not lift rates so far this year, Moneyfacts says, is OneFamily.

“The equity release market boomed in 2021, during a time of record-low rates in the sector and rising house prices, records show total lending reached a three-year high of £4.8bn,” details Moneyfacts finance expert Rachel Springall.

The Equity Release Council released these figures at the end of January this year.

Springall continues: “However, interest rates charged on lifetime mortgages are rising this year, and this means unlocking equity out of a home may now be at a higher cost than if someone locked into a deal last year.”