The Question
With interest rates falling, I wondered how this has been impacting the equity release market? I took out a policy last August and wonder whether I could change my rate if pricing is improving.
Mark’s Answer
Thank you for your question and I am pleased to read that you took out a plan last year and I hope you are enjoying the benefits of the advice you received. Although you have not provided explicit details about your plan, I assume it is a flexible Lifetime mortgage which allows you to borrow capital, and you secure a fixed interest rate for the full-term of the plan.
This fixed rate of interest ensures you know what you will owe at any time throughout your life which many customers find reassuring. However, just because it provides a fixed rate of interest, it is still worth reviewing your plan periodically, to ensure both the fixed interest rate and flexible features are the best for your circumstances.
Therefore, if you want a review of your plan, one of our expert advisers will conduct a remortgage analysis. Here they can consider the fixed interest rate, flexible features and balance of your existing plan and then research the best plan across the whole of the lifetime mortgage market, to understand if there is any benefit at this time of switching your plan to secure enhanced benefits, including the fixed interest rate and features.
Our adviser would also consider any early repayment charges with your existing plan if you replaced it with a new plan and also, the costs of securing a new plan before they make a recommendation.
I can assure you that you will not have to pay for this service and analysis, as you would only have to pay for our advice should you decide to remortgage, and the plan switch completes.
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
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