SWITCH PLANS

 

If you took out an equity release scheme many years ago, you could save your estate £1000’s by switching equity release schemes today.

 

To remortgage an old equity release plan is similar in principle to a residential remortgage - obtaining a better deal by swapping lenders and getting a lower interest rate, or flexible plan.

 

Our FREE Equity Release Remortgage Analysis opposite will compare your existing plan to one of today’s most competitive lifetime mortgage

deals from the whole of the equity release market.

 

Based on your information, the remortgage analysis will take into account your interest rate, any early repayment charge and current balance. It will then conduct a full review to provide your equity release comparison results.

 

Our team of equity release remortgage specialists have vast experience in analysing whether swapping equity release plans is a viable proposition or not for you and their advice will be impartial and thorough.

 

Try the Compare Equity Release Switch Plans tool today and see how much you could save!

 

Now you have the results of your Equity Release Remortgage Analysis, you can make an informed choice as to your next available options.

 

Your local Compare Equity Release adviser can assist by finding the best equity release scheme for you; whether it’s the lowest interest rate, or to calculate the maximum cash lump sum available.

 

Our equity release remortgage specialists can then help guide you through the switch plans process to ensure your transaction goes through as smoothly as possible.

 

So, if the results of your analysis are favourable you have nothing to lose by reviewing your existing lifetime mortgage scheme.

 

Call the Compare Equity Release remortgage team on 0800 678 5169 and start saving money today!

 

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Reasons for Switching Equity Release Schemes

Equity release plans have now been around for many years and have undergone much change and development. If you have an existing scheme, it is for this reason that you should consider an equity release review with one of our experienced lifetime mortgage advisers.


Obtain a Better Interest Rate

Lifetime mortgage interest rates have reduced significantly over the years. The good news is that from their high point of over 8%, equity release interest rates are now at their lowest level of below 4% AER*. Therefore, if you have a high interest rate, by switching lifetime mortgages could save £1000’s in compounded interest and utimately help provide a greater inheritance for your beneficiaries.


The effect of a lower interest rate is that the final balance will be lower. This means a greater amount of equity can be passed onto your beneficiaries. If inheritance is not a concern to you, then a lower balance means that a greater amount of equity could be released by you again in the future.


Transfer to a More Flexible Plan

Lifetime mortgages of old are not as flexible as today’s schemes. Old Norwich Union, Hodge, Mortgage Express and Northern Rock plans (now Papilio UK) did not have any drawdown facilities, so had to be taken as single lump sums.


Therefore, people had to take a larger release of equity than necessary & keep deposited in the bank, from which they could later withdraw. This wasn’t best advice as the interest rate being charged on the equity release scheme would be much higher than that received on their savings.


Nowadays, with the advent of drawdown schemes this situation does not have to arise. Therefore, if you are considering regular withdrawals switching to a new drawdown scheme could make sense if flexibility is a feature you require in the future.


Raise Additional Cash or Equity Release Top-Up

The most popular reason for remortgaging an old equity release plan is to raise additional funds. However, before switching plans it could still be worthwhile revisiting your existing lender.

Some companies could charge a higher interest rate on top-ups than on new applications. Therefore it may be prudent to start again, with the WHOLE balance transferred over to a new lender.


Over the past decade, equity release policyholders have experienced both an escalation in their house price and their age. A combination of these two factors has meant that the maximum amount these people can borrow has increased. By using equity release calculators you can reassess the maximum equity release amount that can be borrowed.


If the maximum cash lump sum is required then we also have new enhanced lifetime mortgage schemes from the likes of Aviva, Just Retirement, Partnership and more2life. Upon completion of a health and lifestyle questionnaire, we can determine how much extra you can borrow due to poor health. These maximum equity release schemes can make all the difference between meeting your goals or not.


Points to consider before taking an equity release remortgage

All facts, including potential early repayment charges must be considered before making a final decision. Our process involves collating information including redemption statements and preparing a switch plans calculation analysis to determine whether it would be in your best interests to swap equity release plans, or not.


Set up charges can also be prohibitive. However with the latest equity release deals including FREE valuations and £1000 cashbacks, they can certainly help make the transition both affordable & profitable by reducing set up costs significantly. We will help you find the best equity release deals.


It is also important to consider the time from submission of the application to funds released as daily interest will still be charged by your existing lifetime mortgage provider. This should be borne in mind if swapping equity release plans & requiring no additional funds as it could leave a shortfall of funds on completion.


For further information on how to proceed with a FREE Switch Plans Analysis you may find the following links useful...


How Much Can I Borrow? | Find an Equity Release Adviser | Call Me Back | Ask A Question


These are equity release plans. To understand the features and risks ask for a personalised illustration.


Please contact us on 0800 678 5169 for further details.


*the sub 4%% equity release interest rate relates to the current Aviva Flexible Lifetime Mortgage. This rate will not be available on all applications as it is based on various factors.

*the switch plans analysis uses net set up cost of £2000 as it assumes a free valuation based switching equity release plans to Aviva's Flexi Lifetime Mortgage.

*an interest rate of 5.0% AER is assumed on the new equity release plan.


Reasons to review your current equity release scheme: -
  • Obtain a lower interest rate - save your estate £1000's
  • Borrow additional funds - lifestyle changes
  • Greater flexibility - take money in stages
  • Your house has escalated in value - inheritance protection
  • Early repayment charge has expired
If you need assistance calculating the balance of your existing plan, please call 0800 678 5159 where an equity release specialist can help you obtain this information.

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These are lifetime mortgage & home reversion plans. To understand the risk & features of these plans, request a personalised Key Facts Illustration.

CompareEquityRelease.com helps you to compare and arrange equity release schemes with the following equity release companies:

Aviva | Bridgewater | Hodge Lifetime | Just Retirement | LV= | more2life | One Family | Retirement Advantage | Pure Retirement