Switching equity release plans is more than just a financial move; it is a strategic approach to maximise your home's value while meeting your evolving financial needs.

But, as the landscape evolves with competitive interest rates and diverse plan features, so does the need to consider switching plans.

Why would you want to lose out on additional tax-free cash or pay higher interest when you may not need to? 

Our dedicated team at Sovereignboss constantly scrutinises the market to guarantee that we deliver the most up-to-date information and updates on offerings, providers, and emerging trends.

Therefore...

Why Should You Review Your Plan?

You should review your equity release plan as it is a long-term commitment, and just like any other financial decision, it is vital to reassess your situation periodically.

The market is continuously evolving, and plans that were competitive a few years ago may no longer offer the best rates or features today. 

Equity release review allows you to understand where your plan stands and allows you to make changes or switch your plan entirely, if necessary. 

It ensures that your are not paying more than necessary and that your are taking full advantage of the benefits it can offer.

5 Advantages of Reviewing Your Equity Release Plan

The five main advantages include securing decreased interest rates, the opportunity to unlock further capital, and the prospect of leveraging novel plan attributes.

More details... 

Obtain Lower Interest Rates

Interest rates fluctuate over time and by reviewing and possibly remortgaging your equity release, you could secure a lower interest rate than you initially had. 

This can significantly reduce the amount of debt accruing on your property and save you a considerable amount of money in the long run.

You can view the latest equity release rates here.

Release More Tax-Free Cash

With property values generally increasing over time, your house may be worth more than when you initially took out your plan. 

Reviewing your plan could allow you to release more tax-free cash from your home’s increased value, providing you with additional funds to meet your financial goals.

Remember, however, that the housing market can be volatile and property prices can also decrease.

Furthermore...

If you have experienced a deterioration in your health, you may qualify for an enhanced lifetime mortgage, which could provide you with a higher LTV (loan-to-value) ratio.

A few conditions may include the following:

• If you are a smoker
• If you have high blood pressure
• If you are overweight
• If you have diabetes
• If you have had or have angina, cancer, strokes, or heart attacks
• If you have Parkinson’s or multiple sclerosis
• If you are on chronic medication

If any of the above points apply to you, contact your equity release advisor or broker to discuss the possibilities available to you. 

Make the Most of the Latest Features

As the market becomes more competitive, providers are offering new features to entice customers. 

These can include options like downsizing protection, inheritance protection, and flexible repayment options. 

The Equity Release Council¹ has also implemented numerous changes to the industry standards, including protections such as the no negative equity guarantee and being able to make voluntary repayments without penalty. 

Save Thousands...

By securing a lower interest rate, releasing additional tax-free cash, and utilising the latest features, you can save significant amounts over the lifetime of your plan. 

It is not just about obtaining more money; it is more about ensuring that your hard-earned wealth works as effectively as possible for you.

Get Access to More Money

Depending on your age and health, you may be able to release more equity from your home. 

Lenders usually allow you to borrow a higher percentage of your property's value as you get older. 

Reviewing your plan could reveal that your are eligible to borrow more than initially thought, providing you with extra funds when you need them most.

How to Review Your Equity Release Plan

Reviewing your plan does not have to be a daunting task. 

Here is a simple step-by-step guide to help you assess your plan effectively:

Seek Professional Advice

Equity release is a significant financial decision, and it is required to seek the advice of a qualified equity release advisor. 

They can provide you with personalised advice based on your situation, help you with figuring out how releasing equity works, and help you navigate the market.

Understand Your Current Plan

Start by reviewing the terms of your current equity release plan. 

This includes interest rates, any penalties for early repayment, and special features such as drawdown options or inheritance protection.

Evaluate Your Financial Goals

Consider if your financial goals or personal circumstances have changed since you took out your plan. 

You may need more cash, or perhaps your priority has changed toward leaving a larger inheritance.

Research the Market

Look at the current products on the market and pay attention to the interest rates and the features they offer. 

This could provide you with a good sense of whether your current plan is competitive.

Can You Remortgage Your Equity Release Plan?

Yes, remortgaging an equity release plan is possible and can be a smart financial move under certain circumstances. 

However, it is important to consider a few things and review each of the terms surrounding them carefully. 

Here are the top points to consider:

• Early repayment charges
• Lower interest rates
• Additional equity release
• New plan features

Common Questions

In Conclusion

Whether it is to secure a lower interest rate, release additional equity, or benefit from new features that better suit your needs, changing plans can optimise your strategy. 

However, it is crucial to be aware of potential costs, such as early repayment charges and legal fees. 

Furthermore, the option to switch plans multiple times exists, but with each change comes added complexity and potential risk. 

Ultimately, it is about staying informed and getting professional advice to ensure that switching equity release plans serves your financial goals effectively.