Bower discovered that over half (53%) of advisers have seen a rise in their clients to move their current deal to a lower rate.
Equity release customers are increasingly looking to switch their plans due to falling rates, Bower Retirement research has found.
Over half (53%) of advisers have noticed more clients looking to switch onto a cheaper deal.
Average equity release rates have fallen by nearly 1% in the past three years and now stand at around 5.66%, although some providers are offering deals below 4.3%.
Andrea Rozario (pictured), chief corporate officer at Bower Retirement, said: “Increased competition in the market with new lenders such as Legal & General and OneFamily launching has meant rates have fallen significantly as the market has grown.
“That is reflected in the growing interest in switching plans but it is vital that customers considering moving get independent advice as any savings from lower rates need to be balanced against any early redemption charges or other costs.
“New lenders coming into the market demonstrate the growing demand there is but it is also clear advisers want to see more providers launching this year to further enhance competition.”
Though a big hitter in Legal & General is now an active player in the market, four in five (78%) advisers think the market needs more competition to keep growing.
A third (34%) also want to see more innovation in retirement lending while the same proportion see more rate cuts as the best way to continue market growth.
The equity release market is predicted to exceed £2bn of lending for the first time in 2016 by the Equity Release Council.
