When did you last look at other equity release providers?
If your answer to this question is never, or not for a long time, then perhaps it’s time to speak to an expert to see if there is a more competitive deal out there for you. The equity release industry is changing all of the time and switching could save you thousands of pounds.
However, before you decide you would like to switch make sure you’re aware of any early repayment charges your current plan may include. Some schemes will charge a fixed percentage based on the amount you have borrowed.
One reason you might want to switch is to benefit from the Equity Release Council’s new penalty-free partial repayments guarantee which has been on offer since 28th March 2022.
This guarantee is already offered by some lenders but it will now be available as a standard feature in all products which meet the ERC’s standards. It means new customers can not only reduce their borrowing but also offset the roll-up interest without having to make further commitments to repayments.
Other reasons you might want to switch include.
Interest rates
If you follow the equity release industry you will have noticed that interest rates for plans have dropped in recent years. If you switch to a newer plan you may be able to reduce the total amount of interest your family need to pay when your plan ends if you die or enter long-term care.
The rate you will be offered will depend on your individual circumstances and a qualified equity release advisor will be able to help you with this.
Benefits
Some plans available now will have tempting benefits such as zero application fees to pay and free valuations. There may also be other aspects to the newer plans which aren’t offered in your current plan such as inheritance protection or downsizing protection.
You may also qualify for an enhanced medical plan if your health conditions have changed. This could give you access to more cash, at a better rate.
Access more equity
If you have decided you would like to release more cash from your home, this may be a great time to switch providers. If your house has increased in value there will be more equity within it for you to access.
Moving house
If you’re moving house or downsizing you should be able to move your existing plan to the new property. However, it is probably worth also looking at whether the current plan still suits your circumstances and the property because switching plans will involve a lot of paperwork and there will be agent and solicitor’s fees to pay which might put some people off.
Changing equity release plans isn’t a decision to be made lightly and as always, we recommend you speak to a qualified advisor who can help you weigh up the pros and cons.
:: Use our Equity Release Calculator to work out how much cash you could release.
It is important to take expert advice on equity release before deciding whether it is right for you. Contact us to find out more from one of our highly trained advisors.
