Now is the perfect time to think about switching your existing Equity Release plan to a new provider
Switching Equity Release providers is straightforward and could save you and your family thousands of pounds.
If you have had your plan for several years, things may well have changed since you first took it out. New products with options that suit you better may now be available, interest rates may well be lower and, as you have got a few years older, you may be able to access further cash from your home .
Finding out whether it is a good idea to switch your lender is a simple, quick process that won’t cost you anything but may save you a large amount in interest payments.
You could be missing out on a lower interest rate
Recently, interest rates have fallen. Even if you have had your Equity Release plan in place for just a few years, and almost certainly if it has been five years or more, there is a very good chance that the interest rates available now will be more favourable than they were when you took out your plan.
Most Equity Release plans are Lifetime Mortgages where the interest is “rolled up” meaning the amount to be repaid to the lender consists of the original amount borrowed plus the interest which has been rolled up over the length of the plan. What can appear to be a relatively small difference in interest rates can result in a much larger difference in cash terms over time, so it pays to keep your plan under review.
New options may be available to you
Since taking your plan many things may have changed. Your existing provider may have moved out of the market, a drawdown option or the possibility of making repayments to the plan may be something you would be interested in now but, for many reasons, it is not something that is available to you through your present provider.
As you have got a little older you may be able to take a higher percentage of the value of your home now, or, your health may have deteriorated somewhat and you may want to draw more cash from your home using an “enhanced” option.
There are too many possibilities to explore here as to why you would want to review your existing plan. But what is true of all those possibilities is that it is quick and easy to check.
You could take some more cash
The amount of cash you can take from an Equity Release plan is very much dependant on age and the value of the property. It is likely that the value of your property has increased, especially if you have had you plan for five years or more. It is absolutely certain that you have got older so the amount available to you may well be bigger.
Different providers may have different amounts you can take, and these may well be different since you first took out your original plan.
Reviewing your Equity Release plan in order to improve your options or to raise more cash, perhaps to help a relative get on the property ladder, couldn’t be easier. Just click here to contact me.
To understand the features and risks of a Lifetime Mortgage, please ask for a peronalised illustration