An equity release loan allows homeowners access to some of the monetary value bound up in their property. In the last decade or so, equity release plans have become a popular option for people who are no longer earning a regular income and need to free up some of their home equity. However, your circumstances can change and after taking out an equity release plan you may want to take advantages of changes in the industry and find the best equity release remortgage deals.
Can I remortgage my equity release plan?
In short, the answer is yes. If you already have an equity release plan you are able to remortgage and find some of the best equity release remortgage deals available. Remortgaging your existing equity release plan also allows you to borrow a larger amount of money than you originally planned to.
Why should I remortgage my equity release plan?
As mentioned, remortgaging your existing equity release plan can allow you to borrow more money and source the best equity release remortgage deals. Changing equity plans can also help you to get a lower interest rate. The equity plans industry has changed and interest rates are now lower than they were in the past. This means that if you took out an equity plan a number of years ago it may be beneficial to remortgage to a new plan with lower interest rates and slow down the rate of interest growth on the balance of your loan.
Considering the benefits of remortgaging an equity release plan (lower interest rates, increased lending, or both) it seems like you shouldn’t be missing out on the best equity release remortgage deals. However, it is important to remember that remortgaging and changing equity release plans can be a complex process and may involve costs such as early repayment charges of the existing plan as well as start-up fees from the new equity release provider plan.
It is advisable to seek independent financial advice to help you find the best equity release remortgage deals and to suggest solutions relevant to your unique circumstances. This is the only way you can get a good deal.
