With lifetime mortgage deals now as low as 3%, many people are still paying over the odds at 6%. In fact, according to reports, 300,000 people could save on average around £33,000. This is largely down to the fact that equity release rates have fallen significantly in the last five years. If it has been some time since you took out an lifetime, now is the ideal time to review it. But how can you be sure that you are on the right deal and benefitting from the best potential equity release savings?
How Does Equity Release Work?
Equity release loans, also known as lifetime mortgages, can be taken out by those over the age of 55, allowing the homeowner to borrow up to 50% of the value of their home. This money may be used to pay off an existing mortgage, to fund a round the world trip, make the most of retirement or make some home improvements. The borrowing is only repaid when the homeowner dies or goes into care.
It can be an expensive way of borrowing with compound interest charges meaning the amount owed can double over a period of say 15 years. At 6% interest, this eats into the property equity a lot faster than with more recent rates of 3%, reducing the equity that is available as inheritance for loved ones.
We Are Saving Thousands of Pounds for Our Clients
Many people that have an equity release plan aren’t aware that they can make the switch and have no idea just how many plans are available to them! They just assume they have to keep their current arrangement for fear of huge repayment penalties or being locked into a deal.
Phil Sheridan and Tony Comport are qualified to advise on equity release products
At Buzz Financial, we proud to be helping our clients save thousands by finding them the right equity release plan, taking advantage of the best deals around. Phil Sheridan and Tony Comport are both Equity Release qualified and can make sure that you are on the best possible arrangement, one that works for you and your circumstances.
Securing More for the Future
Perhaps you are worried about your children’s inheritance or maybe you want to save money. We can save the interest being compounded with an optional payment mortgage meaning that you can pay the interest so that the debt doesn’t grow.
Even with the penalty fees for exiting your arrangement, you could save thousands in the long run. This is welcome news for those worried about the cost of their mortgage and concerned about passing on the debt to their children.
Making Equity Release Savings – The Next Step?
It all starts with a conversation. Either Tony or Phil will look at your current arrangement and the savings that you could potentially make. They will find you the best deal and prepare a financial statement for you. All you have to do is decide if you want to save thousands of pounds. We do all the hard work for you so that you can rest in the knowledge that your assets are protected for your children. Just call us on 01934 756717 to see how we can help you.
A mortgage is a loan secured against your home.
Your home is at risk if you do not keep up repayments on your mortgage or any other debt secured on it.
The information in this blog does not constitute advice and is for information purposes only.