Working hard to buy your home is a very British thing to do, and for many people paying the mortgage is a higher priority than saving for retirement.
So for many, equity release is a good way to use their home to help them live a more comfortable life in retirement.
However, if you took out an equity release loan some time ago, it may be worth looking at whether it might be possible to get a better deal now.
Rate cuts in the equity release marketplace mean that interest rates on these loans are at all-time lows, with some lenders charging as little as 4.3%.. The average rate now stands at 5.66%, around one percentage point lower than three years ago, while the number of plans available has trebled.
Equity release can be undertaken after you reach 55, and since there is no monthly payment being made to the lender – the interest rolls up and the lender is paid when your home is sold on your death or the death of a dependent – it is easy to ignore the benefits of getting a better deal. But that does not mean you should.
However, you should always take advice before switching, because any benefit in the rate could be wiped out by early repayment charges or other fees. Speak one of our specialist advisers before making any decisions.
Give Les or Nish a call now on 01792 720510 or send us an email: firstname.lastname@example.org