Equity Release Schemes are Better Than Ever – But for How Long?
Also known as lifetime mortgage, equity release has become a more popular solution over the past few years for people aged 55 and older. It can prove to be a great way to claim a tax-free lump sum, which could make a real difference compared to other lending options.
Could equity release be a good option for you? Why not try our equity release calculator to compare the different lifetime mortgage providers in the UK? The rates are the lowest they’ve ever been, but for how long?
Equity Release Schemes are Better Than Ever
With rates from 3.5%, equity release rates are boasting their lowest values ever. In addition to being cheaper, equity release schemes are also more flexible than ever before. They provide a wider range of options you can choose from according to your financial needs.
The increased choices have increased the regulation on these schemes, with the Equity Release Council approving lenders and the Financial Conduct Authority (FCA) authorising firms. And this is where we can help you, by providing a free quote call and expert advice. But how is equity release being regulated by the Equity Release Council? Simply put, authorisation from proper associations protects you in case you receive bad advice. It also protects you in case your provider, product, or adviser goes out of business.
Our tips on what to consider when choosing an adviser:
- Are they FCA authorised?
- Do they have experience in advising in the equity release market?
- Have they passed the needed, specialist equity release exams?
- Have they discussed with you all other alternative options?
- Have they properly assessed your situation to provide you adequate advice?
This is where we can help, as we only work with the leading UK lenders and expert IFAs who comply with regulations.
Differences to Conventional Mortgages/Lending options
Equity release differs from conventional mortgages by guaranteeing that the interest rate you secure from the beginning doesn’t change. These plans aren’t typically renegotiated after being set up. Additionally, you can also take a no negative equity scheme to make sure that you never owe more than the figure your property is valued at.
Credit cards, for example, allow you to borrow money and they charge interest on loans. Although some credit cards have an interest-free period, there are downsides in regards to penalty charges. Credit cards require timely repayments or there is a risk of substantial interest charges. Late or missed repayments can incur their own penalties. They can be more of a short-term solution in comparison to equity release.
Equity release has no monthly repayments towards the charged interest, unlike other lending options such as loans. Loans can also be impacted by your credit score, influencing how favourable your rates are.
High Rates of Acceptance
2018 saw equity release lending reach a record amount of £3.6 billion due to the increasingly available variety of products. Both flexibility and choice have grown, with options such as fixed early repayment charges and inheritance protection.
The past years have marked a change in the equity release market; in 2014, equity release lending was at £1.4 billion, which is approximately 2.5x less than what the market is worth today.
Get Professional Advice
You can get a free quote call by getting in touch on 03333 441115. Professional financial advice can help you find the solution that suits your individual needs the best. With the growing equity release market, it’s never been a better time to start considering your options with equity release.
Our equity release calculator can be the first step to discovering the solution to your financial issues you’ve been looking for. Whether you’re a business owner, still working, or retired over 55 years old, we’re here to help you browse through the leading lenders in the UK and compare your options.