Use the FREE Equity Release Switching Plans Calculator
See how much cash you can release from your home.
What are the Benefits?
About the Providers We Compare
Use the FREE Equity Release Switching Plans Calculator
See how much cash you can get from your home.
Did You Know? Every 12 minutes a homeowner over 55 in the UK unlocks £91,667 tax-free cash.
Want To Chat?
Chat with an Expert
* We’ll get one to give you a call.
Equity Release Switching Plans Calculator
Find out what it takes to switch equity release plans or providers to suit your needs better and save thousands of pounds doing it! Take a look at this calculator…
Have you been paying heft interest rates on your current equity release1 mortgage? Are you thinking about switching equity release plans but don’t know how to go by it?
Well, you’re not alone. If you took out equity release schemes a few years back, then you probably want to switch it up for some of the latest equity release products since they offer you several incentives like free valuations, cashbacks2 or no application fees.
So, for those who might be in the dark, why is it vital to change your lifetime mortgage plan and how much will you get after switching them out?
Well, lucky for you, the voluntary repayment lifetime mortgage can help you do this. The mortgage scheme is a relatively recent innovation in the equity release market, and it can offer you flexibility in how you manage your equity release scheme’s balance in the future. It’s because they enable you to repay up to 15% of your original balance every year – whenever you want to and have the finances available to do so.
If you can make some form of monthly, annual or ad hoc repayment2, then the effect on the ultimate amount that you’ll have to repay when your equity release plan ends will be significant.
So, how can you figure out the amount of cash you can save up with the voluntary repayment plan? Well, you can do so by using the voluntary repayment calculator and here’s a detailed guide on it.
What You Should Consider Before Switching Your Equity Release Plan
Well, like any other financial product, there are several costs associated with switching an equity release plan, and so you need to weigh your option before taking the next step.
The first factor you need to look into is the early repayment charges3 (ERCs). Older mortgage schemes have significant ERCs as they weren’t designed to be repaid early. Your financial expert will look through these as they could mean that it’s not in your best interest to change your loan plans now.
You also need to consider the costs involved. Setting up a new equity release scheme will incur potential expenses. The associated costs will vary based on the loan you want to switch to, but as per various equity release experts, they could cost you up to £2,000.
Lastly, you need to consider interest rates. If you do switch your lifetime mortgage, you’ll continue to incur daily interest your current mortgage while your application is in progress. Your financial consultant can help factor in a further 60 days interest when calculating the precise amount needed on the application. You can also consider equity release as an alternative, and if you’re wondering: “How much equity can I release?” all you have to do is use our calculator.
Our Most Commonly Asked Questions
The equity release loan is a mortgage scheme that allows you to unlock the value tied up in your home. Unlike the residential mortgages, this loan offers you tax-free cash, and you don’t have to make monthly payments.
You pay the loan amount plus interests accrued when you die or move into long-term care.
Yes, you can. Most equity release providers allow you to do so. Therefore, if you’ve taken an equity release plan that subjects you to high-interest rates, it’s advisable to check and see if you can switch your mortgage plan and potentially save you hundreds of euros.
Well, you have to use the switching plans calculator that’ll ask you to input the details of your current mortgage scheme. It’ll then project forward your balance and compare it’s against other equity release plan rates on the market. It’ll then display the results in an easy-to-follow layout.
You’ll be able to see the year-by-year comparison between your old and new lifetime mortgage plan. You’ll also find out when switching the equity loan will become profitable.
Yes, you can, with the drawdown lifetime mortgage. The equity release mortgage allows you first to take out an initial amount. The rest of the capital remains in a cash reserve facility where you’ll drawdown some cash when you need – most people withdraw every month.
Well, to use the equity switching plans calculator, you have to type in some of the vital details about your current lifetime mortgage scheme.
When you do that, the switching plans calculator will then automatically projects forward your balance and compare it’s against several equity release rates available. The automated equity release calculator will factor in various things like the costs associated with switching a mortgage plan and the early repayment expenses you’ll incur.
The results are revealed in as straightforward format do that can see the year-by-year comparison between your previous and new mortgage plan and assist in establishing the year in which the break-even point will be – the year that switching equity release plans becomes profitable for you.
So, when you use the analysis tool you can, in detail, see over time, the amount of capital you could possible save by your switching equity release plan.
You don’t have to struggle trying to figure out how to pay your equity release plan if you’re subjected to high-interest rates. Just consult your financial advisor and see if you can switch your loan and if you can, use the equity release switching plans calculator and figure out how it’ll work for you in the end. So, relax. Everything always has a solution!
Releasing equity from your home is such a great way to get some extra cash! Better yet, ironically, you’ll be able to get more money out when you’re ill or suffer from health issues. You’ll also be charged less interest than healthy people.
If you have any further questions, feel free to ask us any time!
How Much Can You Release?
Most people are using Equity Release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.
Use our free equity release calculator & see how much you can release today.
SovereignBoss.co.uk is a marketplace connecting people with mortgage firms. Accordingly, SovereignBoss.co.uk does not provide quotes or sell products directly to consumers and is not a licensed agent or broker.