Better Deals on Equity Release Mortgages

Typically, older equity release mortgages can have you steeped in high interest charges that are simply eroding the estate. While some people will continue stressing with their month to month equity release charges, others will opt to make a change in their lives for the better by considering remortgaging their equity release scheme. This can also be considered as swap equity release schemes.

If you find that you are wasting money and time, or someone you know is wasting their time with an old equity release mortgage plan, you may want to advise them to look at swap equity release schemes for their own good. Performing the switch to a new lifetime mortgage plan can be easy and quick, but will also relieve plenty of stress that you are now in a better position to save the equity in your property . And the time for switching to a new equity release scheme has never been better with interest rates being lower than they have ever been. Therefore, it is the perfect time to make the switch.

You may be wondering how exactly one can switch from their old plan to a new equity release scheme. The process is incredibly simple and should not take too much of your time. All that is required of the individual is to get in contact with an independent equity release consultant. They will review your information, complete a switch plan analysis and give you a definite decision as to whether or not you should swap equity release schemes.

What benefits can come by switching equity release schemes?
One of the major benefits of switching lifetime mortgage plans is down to interest rates. Current rates during 2012 are the lowest that homeowners have seen in years; these incredibly lower rates could save you £1000’s over the long term. Another benefit of choosing this type of plan is the greater flexibility now available whereby you have the option of applying for drawdown equity release schemes with absolutely no problem. The last benefit is that the start-up fees for modern day equity release plans are much lower due to the inclusion of special offers such as cash backs and free valuations.

Qualifying for the Switch
You may not qualify to switch your loan. Not everyone does. It is important that you remember this as you speak with a qualified specialist. Even if you do qualify for a switch there is a question of whether you want to switch to a better scheme in the end.

While there are benefits that could save you money, there are also issues with changing over to a new equity release that may cost you more in the end. Interest is still going to accrue and if you have a provider unwilling to waive the change over fees that can apply during the switch you may not save money.

It is like looking at remortgaging a loan you have in the mainstream market. Sometimes you do not have enough of a lower interest rate to actually save you any money. This is where the calculator of potential benefit savings comes in to help you fully understand the situation you are in.

What to Swap for
One thing is quite wonderful about the latest products released in this financial market. You are able to obtain different products that did not exist under the old schemes. For example, drawdown is a lifetime mortgage started in the last couple of years, whereas the standard home reversion has existed since the 80s. In a drawdown scheme you at least get to take a lump sum and accrue interest only on the amount you withdraw. The downside to this swap in reversion is that you may not have much money left to withdraw. At the least you can stop from accruing any more interest on money that is left in your account until you actually use it.

Always speak with your family members before you decide what is best. You never know when you may find a better option to converting your old release to a new one. Financial advisers can only help you make a sound financial decision and may not help you weigh your families overall thoughts.

Looking to swap equity release schemes should be undertaken on a regular basis, particularly for some of the older equity release plans from yesteryear. Enjoy lower start-up costs, fixed interest rates and the availability of drawdown plans when you decide on whether to swap equity release schemes.