Switching your equity release plan.
Whichever lifetime mortgage you have in place, another way that you can do equity release more than once is by switching plans. This is also known as rebroking or re-equity release.
Similar to a remortgage, switching equity release plans involves speaking to an adviser to compare plans from different providers who could offer you a better rate, more tax-free cash or both.
Your adviser will search for a new plan which will pay off your original equity release plan plus any interest and early repayment charges (if applicable).
You might find that you are able to achieve a better deal based on you being older now. Your home may also be worth more than it was, or you might have developed a health or lifestyle condition that qualifies you for medically enhanced terms.
By searching around for a new deal, you may also find that you can access new features that your current plan does not offer, such as:
- A drawdown facility: Ringfence a cash reserve facility to unlock your additional funds in smaller, regular amounts when needed.
- Repayment options: Make voluntary repayments up to a certain amount each year to minimise the interest or your overall loan, penalty-free.
- Downsizing protection: Gives you the freedom to downsize and repay your loan without any early repayment charges after a certain number of years.
- Significant Life Event exemption: The freedom to repay your loan without penalty should the other homeowner pass away or move into long-term care.
- Inheritance protection: Guarantee a percentage of your home’s value for your family to inherit one day. This will naturally reduce the amount of money you can borrow.
Read more about switching your equity release plan here.