Some might say that equity release is just another modern buzzword, and because it is used so often nowadays, one might be forgiven for thinking it is just another turn of phrase. Actually, equity release means that the customer can take out an agreed portion of their accumulated equity without waiting for the mortgage to finish. Traditionally, one would have to repay the mortgage, and then sell the property in order to realise one’s equity, but with the right equity release plan, the homeowner can access their accumulated equity at any time.
Existing plan holders
Some people think that an equity release scheme is set in stone, and cannot be altered in any way. This could not be further from the truth, and in many cases, the homeowner can save significant amounts by finding another provider and making the switch. Northern Rock customers are particularly advised to rethink their plan, as the interest rates were much higher when they took out the plan. There is also a level of flexibility with some providers, such as Aviva and Just Retirement.
This company works for J.P. Morgan, and administrates all of Northern Rock’s ongoing business. They are not a specialised equity release organisation, and many Northern Rock customers have switched to a better provider, who offers a lower interest rate, and also is more flexible. There are reputable online brokers who can quickly establish if it is beneficial to switch providers, and with their professional advice, everything can be completed with the minimum of inconvenience to the customer.
No further advances
Papilio have taken over the administration of all Northern Rock’s plans, but they will not accept any additional advances on the equity plan, so if you were planning to top up your equity release, that is no longer possible with Papilio. This is one reason to make the change to another provider, but there are other good reasons to consider switching to another company, and by contacting a reputable broker like Responsible Equity Release, you can receive the best advice.
No loss of ownership
Taking an equity release program does not in any way affect your rights as the home owner, and you are guaranteed to be able to reside in the home for the rest of your life. If you are considering equity release, talk to an advisor, who can recommend the right package. You might just be curious to find out how much equity you could release, or you may already have an existing plan, and would like to know if you can improve on that. Whatever your interest or current situation, if you are a homeowner aged 55 or more, equity release could be right for you.
Nothing to lose
One has nothing to lose and everything to gain by getting in touch with a reputable broker and finding out what the current options are. A broker would be happy to advise you, and many people are now enjoying a much better life, thanks to equity release.