If you are one of the old benefactors of Northern Rock Equity Release then you should be aware that Northern Rock do not write new equity release business any longer. This doesn’t means that your deal is over but in fact, they have sold off their equity release mortgage book to Papilio UK Equity Release Mortgages Ltd who are now responsible for managing all those old completed cases which were originally taken out with Northern Rock Equity Release.
There was a time when Northern Rock stood nothing less than the other major equity release lenders such as Aviva, Portman Building Society, Hodge Lifetime and even In Retirement Services. They got in deep trouble with the credit crunch that swept the financial world leaving them as one of the worst affected. After the large scale off in March 2012, Papilio UK Equity Release became the new administrator, who are now handling all the enquiries of customers belonging to Northern Rocks equity release book.
If you are trying to enquire about taking some more cash from your home equity loan which was originally offered by Northern Rock, then you must know that the new Papilio administrators don’t allow you to take any further loans on your home. Apart from that, you might be shocked to hear that the rate of interest that you are paying to them is approximately 1.3% more than what the other lenders are offering in current scenario’s. Therefore, rather than struggling on thinking your bridges have been burnt, get some financial advice on this matter.
Considering the power of the compounding interest, you should consider the potential savings you could make by switching to another equity release lender who is offering a much better rate of interest.
An equity release remortgage is therefore one angle that should be explored further. This option could be exercised as it not only promises you a huge saving on interest in the long run, but also the new lender may be able to assist with further borrowings on top. Therefore you can opt for an immediate release of equity or even have a cash reserve to be accessed at any time in the future via a drawdown lifetime mortgage basis.
If you are worried about repayment and other miscellaneous charges on account of closure of your original Northern Rock equity release mortgage then take a breath of relief. The total set up cost to switch over is not as much as you might anticipate. An equity release remortgage is becoming more commonplace these days as the over 55’s with existing plans are striving to get the best equity release deals.
Currently, Papilio are letting customers go with NO early repayment charge given that they wish to reclaim their initial investment. You can find many current equity release brokers offering free advice and free valuations as well as cashbacks up to £1000 upon the remortgage of your property. Looking diligently, you can even strike on the interest rate as low as 5.62% per annum. Click here for the latest equity release deals.
With interest rates never been so low & having the security of fixing them at today’s rates for life, never has there been a better time to review your old Northern Rock lifetime mortgage. To find out how much you could save by switching your old equity release for new, use the Compare Equity Release FREE Switch Plans tool.Back