Do you have an equity release plan? Now is the time to review it, as rates have changed considerably over the past few years and switching product now could save you thousands…
Review your Equity Release
Equity release plans (sometimes called lifetime mortgages) have been available to homeowners for many years. They are available to homeowners aged over 55 and allow you to release a proportion of the value of your home in cash.
While they allow property owners to release funds to enjoy retirement, help children onto the property ladder, or even pay for home improvements, equity release plans have historically attracted high interest rates.
Not only that but the original plans were quite inflexible, offering low loan to property values. Nowadays, with interest rates slashed, you could cut back the interest rate and even be able to release more cash if you needed to. It’s estimated that 300,000 UK homeowners have borrowed money in this way However, it is absolutely possible to move to a product that suits your needs better – and saves you money. Read more about whether an equity release product is right for you here.
How much could you save by switching your equity release loan?
With lower interest rates now available, you could save thousands if you remortgage your equity release scheme. For instance, if your current rate is 8.20% and you have borrowed £70,000, then you remortgage with a rate of 5.75% – you could save in excess of £30,000 over the next 10 years. Significant savings could be available even if you have to pay a fee to leave your existing arrangement.
As we mentioned earlier, you could also potentially release more funds if needed, pay off some of your interest without penalties and get an improved all-round deal with better terms and conditions for your circumstances.
How can I switch my equity release product?
The most important thing is to get expert advice before you do anything. To find a specialist adviser near you, head to the Equity Release Council’s website www.equityrelease council.com, where you can search for Council members. All members have agreed to abide by the Council rules and have signed up to the Statement of Principles.
If you would like to discuss reviewing your equity release mortgage or any other financial matter, J Finance, which is a member of the Equity Release Council, will be happy to help. Please contact us without obligation.
Established in Berkshire in 2004, J Finance Ltd is one of the leading financial planning companies in the area. We serve clients across England and Wales. If you would like to discuss this subject or any other financial matter, please contact us on 01635 521 300 or email email@example.com.
EQUITY RELEASE CAN AFFECT THE FUTURE INHERITANCE OF YOUR BENEFICIARIES, NOT TO MENTION YOUR OWN FINANCES. THEREFORE, IT’S IMPORTANT THAT BEST ADVICE IS SOUGHT DUE TO THE COMPLEXITY AND VARIATIONS BETWEEN ALL EQUITY RELEASE SCHEMES.