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Switch your equity release plan

Why switch? It could save you money

When you take out a lifetime mortgage, it’s likely that your interest rate is fixed for life. While that certainty can be a benefit for many, it’s actually a disadvantage if rates start to drop. 

Why switch? You could get more money

If your circumstances have changed, do you know whether you could access more money from your home now?

Or perhaps your house has increased in value meaning there is more equity within it.

Why switch? Your plan may no longer be right for you

If your needs or circumstances have changed, there may be a lifetime mortgage that suits you better.

Your options could include:

Repayment: You could now be in a position where you’d like to repay some or all of the interest and / or some of the capital so there could be more equity remaining. Equity release may leave you with little or no property equity remaining.

Lump sum vs drawdown: Lump sum lets you unlock some of the equity in your home as a single, one-off amount. As compound interest will be rolled up on what you release, you will owe more if you release all your funds in one go. There could also be an option to take out a drawdown lifetime mortgage, starting with a smaller initial amount and taking out further amounts in the future if you need it. Your lender may have the option to withdraw your drawdown facility and if you choose to make a drawdown, the funds will be subject to the prevailing, fixed interest rate at the time which may be higher or lower than your original interest rate.

Inheritance protection: You could ring-fence a percentage of your home’s future value as a guaranteed inheritance.

Downsizing protection: If there’s a possibility you may move home in the future, this feature will allow you to repay your lifetime mortgage in full without an early repayment charge, should the property you’re moving to not be acceptable to your lender. This is usually after 5 years from when the plan completes.

Are you eligible to make that switch?

You will require advice to switch to a new lifetime mortgage as switching may mean that early repayment charges are payable on the current lifetime mortgage. Our qualifitied equity release advisers will be able to discuss this with you.

Things to consider 

  • Mortgage Advice Bureau Later Life offer lifetime mortgages only which is a loan secured against your home.
  • Mortgage Advice Bureau Later Life offer lifetime mortgages from a carefully selected panel of providers.
  • Unless you decide to go ahead, our service is completely free of charge, as our fixed advice fee of £1,295 would only be payable on completion of a plan.
  • As part of our advice process, we'll consider whether retirement interest-only (RIOs) and other mortgages may be suitable and can arrange advice on these if appropriate. Advice fee will vary.
  • Equity release will reduce your estate's value and may affect your entitlement to means tested benefits. 
  • A lifetime mortgage may result in limited or no property equity remaining and will reduce your financial options in the future.
  • The loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care.