With rates below 3%, has there ever been a better time to consider equity release?
With equity release interest rates falling to below 3 per cent, now could be a good time to unlock the value of your property with the help of Age Partnership
Has there been a better time to unlock the value of your home? With equity release rates tumbling to below 3 per cent, it’s arguably one of the most attractive periods in living memory.
A lower rate makes it cheaper to borrow money. Of course, the lower the rate, the less interest you will have to pay over the lifetime of the loan. And that’s not all – equity release plans are also becoming increasingly flexible, with a variety of features now available to meet different needs. Calculate how much tax-free cash you can release.
Tax-free cash
For example, with some plans you can opt to take the tax-free cash released as a monthly income, rather than a lump sum of money, which can help you to budget over longer periods.
There are also greater options for how – and when – to make repayments, so that you’re not accumulating as much interest along the way.
In addition, there are plans that provide the option of taking a cash reserve at a later date, which means you’re not paying interest on money that’s not needed immediately.
Free quotations
The only question will be whether such plans meet your needs. That’s why some equity release brokers, such as Age Partnership, provide you with free quotations – and no obligation to proceed.
This enables you to decide if equity release is the right solution for your circumstances – and, if so, what plan is best suited to your particular situation.
The actual equity release rate you can secure will depend on your individual circumstances and will be discussed during your free quotation.
Age Partnership’s online calculator provides you with an instant calculation, so you can see just how much tax-free cash can be accessed from your home.
Whether you’re looking to pay off outstanding debts, help your children buy a property, or simply ease the monetary burdens of modern life, equity release is a solution that’s worth considering. Get your instant calculation.
Home reversion and lifetime mortgage
Equity release may involve a home reversion or a lifetime mortgage that is secured against your property.
Home reversion plans involve you selling all – or a percentage – of your house, while continuing to live in the home.
A lifetime mortgage, meanwhile, enables you to borrow money secured against your property, which can be taken as a lump sum or in smaller amounts over time. With this option, you continue to own 100 per cent of your own home.
To understand the features and risks you will need to ask for a personalised illustration.
An equity release advisor will tell you how it will affect the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected, either now or in the future.
They will explain that equity release requires paying off any existing mortgage and the money that you release, plus the accrued interest, will be repaid when you die or move into long-term care.
Your initial equity release quotation is free of charge, with no obligation to proceed. Only if your case completes would a fee of 1.95 per cent of the amount released be payable (minimum £1,495).
For an initial idea of roughly how much equity you could release from your property, try our equity release calculator here.
Click here to use our free equity release calculator