Could you save money or release more cash by switching equity release plans?

How much more you could release is based on your individual circumstances. For instance, you may be able to unlock a higher percentage of your home simply due to being older now than when you arranged your plan. 

If you’ve developed a health condition since you arranged your plan, you may now qualify for an enhanced lifetime mortgage. This could mean you can unlock even more money when you switch equity release plans. Enhanced plans consider the number and severity of qualifying medical conditions, your lifestyle factors and property value. Your adviser will be able to work out if you qualify for enhanced terms during your initial appointment.

As your maximum cash release amount is personalised to you, speaking to one of our carefully selected advisers will help to ensure you get the best deal possible from a range of leading providers.

Just as with a normal residential mortgage, you should be aware of costs involved in setting up a new equity release plan. Your adviser will make sure you understand these in full before you decide whether to take out a new plan, but below is a summary.

Your new lender will typically charge valuation, arrangement and completion fees, with further fees payable to the solicitor who acts for you. Some of these fees can be paid from the money you borrow, so you may not have to worry about finding them from your existing savings. 

Our selected advisers naturally charge an advice fee – but remember that any initial advice or information you receive from them is completely free and without obligation. You only pay them a fee if you apply AND your case completes.

Once a new plan is taken out, there aren’t normally any fees. One exception is an early repayment charge that some lenders request if some or all of your lifetime mortgage is paid off before you pass away or move into long-term care. Your existing equity release provider may make this charge when you switch plans.

If you’re moving home, you could either port (move) your existing plan or get a new deal. Some equity release plans will allow you to port your lifetime mortgage to your new home. However, it’s important to look at all the options available to you to see if you’re getting the best deal for you, and this is something our selected advisers can do for you.

A lifetime mortgage has worked for thousands of over 55s in need of tax-free cash. If you are thinking about switching equity release plans and potentially unlocking more money, it’s important to understand the lifetime mortgage pros and cons before deciding. Here are some drawbacks of equity release that your adviser will fully explain to you: 

• Interest is rolled up and added to the amount you owe each month. The amount owed therefore increases and reduces any equity left in your home when the plan ends. Some plans allow you to offset this by making monthly interest payments with an interest only lifetime mortgage.
• Although there are plans that allow you to ring-fence a percentage of your home’s value for your loved ones in the future, the inheritance you leave to loved ones will still be reduced by equity release.
• If you give some of the money you release to family as a gift, they may be liable to pay inheritance tax in the future. Your adviser will explain this to you during your free initial appointment.
• Equity release is usually a lifetime commitment, so you may incur early repayment fees if you choose to pay back all or some of the loan early.

Borrowing money through a lifetime mortgage may affect your entitlement to some means-tested state benefits. During your appointment with one of our selected equity release advisers, they will help you establish whether your benefits could be affected.