Equity Release plans have evolved significantly, offering more flexibility, including the option for repayments. But let’s tackle the big question: “Can I repay my Equity Release?” Yes, you can, and here’s what you should know about the process and potential penalties.
Deciding to repay your Equity Release
Situations change, and you might find yourself thinking about full repayment of your Equity Release plan. It’s a decision influenced by either a windfall or necessity, each with its considerations and costs.
The why and how of early repayment
Whether it’s a choice following a windfall or an obligatory circumstance like moving house, the cost implications are pivotal. You’ll need to weigh the balance, costs, and penalties to determine if repaying makes financial sense.
The cost of early repayment
Your initial paperwork from the original Equity Release plan spells out the financial details, including any penalties for early repayment. These fees can vary, possibly reaching into the thousands, so it’s crucial to review these terms before proceeding. Typically, the longer you have had the plan, the lower the penalty. But that is not always the case and you should check things carefully.
Moving house or provider
If you’re moving or switching providers, professional advice is essential to navigate costs and penalties, which, don’t forget, will be on top of regular moving expenses.
Seeking Guidance
Lost your paperwork? No worries. You can get copies from your provider or consult a qualified Equity Release specialist to discuss the pros and cons of repaying your plan.
Choosing your adviser
While you’re free to return to your original advisor for advice on changes to your plan, don’t hesitate to seek a fresh perspective if you feel it’s necessary. The market may have evolved, offering more competitive options that better suit your current needs.
The bottom line
Yes, repaying your Equity Release is possible, but it’s not a decision to make lightly. “Will there be a penalty for repaying my Equity Release?” is a question best answered with thorough research and professional advice to ensure you’re making the best choice for your financial future.
