Equity release plans have improved vastly in recent years, with schemes offering greater flexibility and interest rates now highly competitive. And if you already have an equity release plan, you could save money by transferring to a new one with a lower interest rate.
If you’re over the age of 55 and your home is worth £70,000 or more, you could be eligible for equity release. This would mean you could borrow against the value of your home and have a substantial cash sum to spend as you wish.
Many people use equity release to fund their retirement, carry out home improvements or avoid having to sell up and downsize. Others use it to help their children get onto the property ladder or fund the holiday of a lifetime.
If equity release is something you’ve been considering for a while, there’s never been a better time to look into it.
Low interest rates
Equity release interest rates are at record low levels. Depending on your age and personal circumstances, rates are typically at three per cent or less, compared to around six or seven per cent over five years ago.
If you already have an equity release plan, you might be able to switch and save a substantial sum of money. As rates have dropped dramatically in the last five years, you might wish to revisit your current plan and see if you could make a saving.
By way of example, one client of ours saved £60,000 over ten years in what would have been interest rolling up over the years by switching to a more competitive interest rate.
You could switch and save
You may have to pay an early repayment charge, but it could still be worth your while switching. It’s worth running the numbers to find out if you could save money.
Merely exploring your options will cost you nothing. There is no fee to pay until completion, so even if you have a conversation with an equity release expert and decide not to go ahead, you won’t incur any costs. An initial conversation with one of our equity release advisers is completely free. You’ve nothing to lose and potentially everything to gain.
Feel free to get in touch with us for advice on equity release. You can also download our free guide to equity release here.