Reviews Your Plan in 2022

Why You Must Review Your Equity Release Plan in 2021
Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui
Did You Know That Top Equity Release Lenders Provide a Free Service That Allows You to Review Your Current Equity Release Plan? If You Unlocked Equity or Signed a Plan Before 2020, We Strongly Advise That You Make Use of This Essential Service.

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Why Must I Review My Equity Release Plan?

It’s essential to review your equity release plan because the industry has evolved significantly over time, and you could possibly find a better deal with great features and lower interest.

If you don’t review your equity release plan, you could be paying vastly more than you should be!

Equity release plans have been around for about 20 years now and the industry is ever-evolving.

We’ll help you discover:

  • How the industry has shifted.
  • How it has improved.
  • If it’s wise to review your plan.

At SovereignBoss, our aim is to not only provide you with the best advice on unlocking equity, but also on how to maintain your current plan.

Should you review your plan?

Find out now!

What’s Equity Release?

Equity release is a range of products that let you access the equity (cash) tied up in your home if you are aged 55 or over.

With equity release, you can take the money you release as a lump sum, in several smaller amounts, or as a combination of both.

How Has the Equity Release Industry Shifted?

The equity release industry has shifted with new competitors popping up, rising property prices, and industry growth, the market’s becoming vastly more competitive.

As things currently stand, equity release has never been safer or cheaper.

  • Pre-1991 – The Equity Release Council was formed in 1991 to regulate the industry. Before then, the industry was full of corruption.
  • 5 Years Ago Interest rates were substantially lower, averaging at 6%.

What Are the Risks of Not Reviewing Your Equity Release Plan?

The risks of not reviewing your equity release plan is that you might be paying more interest than you need to.

You could be missing out on fantastic benefits, and you could have more equity available in your home that you’re not even aware of.

What Are the Benefits of Reviewing Your Equity Release Plan?

The benefits of reviewing your equity release plan are that you could possibly find a plan with lower interest rates and more flexible deals.

If you unlocked equity a few years ago, interest rates have since dropped.

Here’s further detail:

  • Lower interest rates – You might be able to lower your current interest rates. This means that your estate will owe less on your loan when you pass away or move into permanent care.
  • Rising property prices With property prices rising, you might be surprised to learn that your home valuation is now a lot higher, meaning that there is more equity to unlock from your estate.
  • Modern benefits – You could gain access to brilliant benefits that you never had before, like a drawdown facility or inheritance protection.
  • Improved terms – With industry regulations tighter than ever, you could get a plan with better terms and conditions.
  • Equity Release Council protection – If you don’t have one, you’ll want a plan with a lender that’s a member of the Equity Release Council, that comes with a ‘no negative equity guarantee’.

What Does the Equity Release Council Do?

The Equity Release Council (ERC) regulates the equity release industry.

It’s a nonprofit organisation that was founded in 1991 and is backed by the UK’s major equity release providers.

It was established to help consumers make informed decisions about their equity release plans and protect homeowners’ interests.

Their role has significantly benefited the equity release industry. If you unlocked equity prior to 1991, we strongly advise you to review your plan.

What’s the Equity Release Market Like in 2022?

The equity release market is fully regulated and secure in 2022. It’s vastly different from what it was in years gone by.

Interest rates were at an all-time low in March 2021, but have since increased.

You can expect you to pay between 3.1% and 6.80% in interest, depending on your circumstances and property value.

Furthermore, competition means lenders are offering special features, deals, and more flexible plan options.

Equity Release Savings
Newer 2.5% Plan vs Older 7% Plan

Interest5 Years10 Years15 Years
Interest Saving£14,231£36,298£69,726

Equity Release Savings
Newer 2.5% Plan vs Older 5% Plan

Interest5 Years10 Years15 Years
Interest Saving£7,486£18,084£32,806

That’s a MASSIVE saving of £32,806 on interest over 15 years!

Got Questions? Check These First

Should I Review My Equity Release Plan?

How Can I Get My Equity Release Plan Reviewed?

In Conclusion

While you’re under no obligation to switch plans, it’s undoubtedly essential to renew your plan, perhaps even annually.

You never know what you could achieve and how an updated plan could change your life.

Get in touch with your financial adviser or speak to your equity release plan provider today!

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Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
John Lawson

Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
kath icon

Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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