If your equity release scheme is a few, or many years old, it is worthwhile now to review it and see whether you could save money by changing equity release schemes and obtaining a more favourable equity release deal. The main reasons are that interest rates have fallen from the heights of over 8% to today’s lowest ever level of just 5.57% with the Aviva Flexible Lifetime Mortgage Plan. Couple this with a free valuation and upto £1000 cashback and it makes the process of switching plans very cost effective. By removing 1% or even upto 3% off your current interest rate, could save your estate £1000s in compounded interest over the long term.
The exclusive switch plans tool on this site will compare on a like-for-like basis how long it would take to break even before you break into profit. It will accept details of the original equity release plan including the current interest rate, any early repayment charges and compare to a current deal in today's competitive equity release market. Additionally, the results will advise how much you could save over a 20 year period. Therefore, where you have previously undertaken a release of equity, you should now consider a switch plans analysis, as it is important that you review this existing arrangement and compare it to today's more competitive and flexible lifetime mortgage schemes.
Many people fail to take advantage of this plan of action because they have the misconception that when you take equity release for the first time, then you are stuck with it for life, which is definately not the case. Similar to the way you switch bank accounts across different banks, you can also switch to newer equity releases and you have a good reason to do so as mentioned earlier. (more...)