Are you paying dramatic interest rates on your current equity release plan? Have you been considering to switch equity release plans but you’re unsure how to go about it? Read more to find out how much money you can release if you change plans! Well, we’re here to help.
But, what’s equity release exactly?
Explaining Exactly What Equity Release is
Equity release refers to your property’s items/parts that let you access your money tied up in your house. However, you can only gain access once you’re 55 years or older. You can get the capital value of objects in your home as a lump sum or an income based on the house’s value. You’ll just need to repay that money you accessed at a later stage.
To Learn More: What is Equity Release?
What’s an Equity Release Plan?
An equity release plan offers homeowners who are of retirement age (55 years and older in the UK) a chance to let go of some of the money tied up to their property. In this way, there’s no need for a retired person to seek a new home after retirement.
To Find Out More: Equity Release Plans
What Should I Consider Before Switching My Equity Release Plan?
As with other financial products, there are a few costs that go with switching an equity release plan1. So, you’ll need to weigh your options before switching from one plan to another. Consider the following points:
- Look at the early repayment charges2 (or ERCs). In the past, older mortgage plans had big ERCs because they weren’t made with early repayments in view. Your financial adviser will need to check these out for you. It might not be in your best interest to switch plans now.
- You should look at all the costs involved with switching from one plan to another. Applying for a new equity release plan will have other potential charges. The extra costs will depend on the loan that you want to change to. According to most financial advisers, these costs are roughly £2,000 maximum.
- Look at the interest rates. If you change your lifetime mortgage, you’ll continue paying daily interest on your initial mortgage throughout your application process. Your financial adviser can help calculate 60 days interest when you want to determine the exact amount needed on the application.
So, you might be asking yourself…
How can I calculate the exact amount of money you’ll end up with after you’ve switched equity release plans? Well, you’ll use the Equity Release Switching Plans Calculator. It asks you to input the details of your initial mortgage plan. With that information, it’ll estimate your balance and compare it with other equity release plan rates that are out there. Your results will display in an easy-to-read format.
The results will show you a year-by-year comparison between your initial plan versus your new plan. That way, you’ll see when you’ll profit from switching the equity plan and how much money you’ll get in the end.
Can I Calculate How Much Money I'll Get When I Switch Equity Release Plans?
Yes, you can with the Equity Release Switching Plans Calculator. It asks you to input the details of your initial mortgage plan. With that information, it’ll estimate your balance and compare it with other equity release plan rates that are out there. Your results will display in an easy-to-read format.
What's the Equity Release Switching Plans Calculator?
It’s a calculator you can use to see how much money you’ll get out of your loan when you switch plans. It compares different plans over a period for you to know the amount you’ll end up with.
How Does the Equity Release Switching Plans Calculator Work?
It takes the current equity release plans and compares it to other plans on the market. The value of your home and your age also affect the outcome of the calculations, of course.
Is the Equity Release Switching Plans Calculator Accurate and Safe?
Yes, it’s safe and accurate; you just need to input the correct information. The results will show you a year-by-year comparison between your initial plan versus your new plan. That way, you’ll see when you’ll profit from switching the equity plan and how much money you’ll get in the end. Your information won’t be shown or given to third parties either.
With how the market has evolved over time, more and more people are starting to assess their financial plans and are not liking what they are seeing. That is why switching equity release plans has become something ordinary in the business as people’s situations continually change and rates/fees change as well.
Switching from one equity release plan to another can be daunting and risky. However, with the help of this beautiful calculator, you’ll be able to determine if it’s the right option for you and your future. We advise that you use the calculator, have a look at your current plans and the alternative options available to you. If you have any questions feel free to ask.