How do equity release deferment rates work?
Equity release is a way for homeowners to release a portion of their home’s value as tax-free cash, without having to sell the property or move out. Deferment rates play a role in determining the overall cost of an equity release plan.
The deferment rate is one of the more technical aspects of equity release. In fact, it’s not something that you’re likely to find mentioned in most providers’ product information. Instead, it’s one component in setting the equity release interest rate that an equity release provider will offer you.
Even so, you may find it interesting to read our guide to equity release deferment rates, which covers the following subjects:
- What is a deferment rate?
- Why is the deferment rate so important in equity release?
- How are deferment rates calculated?
- Will I know the deferment rate on my lifetime mortgage?
- How can I compare equity release rates?
We hope this information will help you understand equity release deferments rates and their effect on interest rates. For more information about equity release, including help and advice from our selected equity release advisers, please call us on 0800 096 2215 or request a call back. Alternatively, check your eligibility and get an initial indication of how much tax-free cash you could unlock.