Switch your existing Equity Release plan for a cheaper deal today

14th June 2019

Do you have an existing Equity Release plan? Has it been reviewed? It could be time to look at your existing plan to see if you could switch to a cheaper deal.

If you have taken out Equity Release in the past, you may not be aware that you could switch your existing plan to a better deal and potentially save yourselves £1000s in interest. Nowadays, the interest rates for Lifetime Mortgages – as Equity Release is also known – are currently the lowest they have ever been. If you were to take out an ER plan today the interest rates could be as low as 3.3% whereas in the past many plans offered rates as high as 6, 7, or even 8%. Feel cheated? Don’t! The good news is that if you have an existing Lifetime Mortgage, we could help you ‘switch’ the old plan with the higher interest rate, to a new plan at a lower cost and save you money. It is very similar to how traditional buyers may choose to re-mortgage to find a better rate of interest. So why wouldn’t you do the same with your Lifetime Mortgage?

How does it work?

Essentially getting a new deal is the same as taking out an Equity Release plan for the first time. As your specialist advisor we would look at your age, health and current value of your property, and consider the actual value of your existing loan and any associated Early Repayment Charge (not all plans have this penalty included). Even if there is an Early Repayment Charge, overall it may still be cheaper to get a new loan.

We would then find a new plan at a lower rate of interest which would be used to pay off the original loan, and any Early Repayment Charge if applicable, and potentially allow you to release further funds from the value of your estate if desired. The new plan may also have additional benefits which did not exist in your old plan such as downsizing options, drawdown facilities, free optional repayment of the loan, free repayment on death of the first life, and inheritance protection.

A switch is a change….. and change can be good.

With this new knowledge in mind you could switch plans and save money and give yourself a lifetime worth of new experiences and freedoms that you never knew were possible. If switching your existing Equity Release plan is something that you would like to consider, why not call Kevin Woods on 01489 454545 or at kevin.woods@therightequityrelease.co.uk to discuss your situation in confidence and without commitment or fee of any kind.

Why not get in touch and see how we can help?

Equity release is the answer to so many financial questions. If you would like to know more about it, and see if it could be the right move for you, please book an appointment or request a call-back