Independent equity release advice is paramount in sourcing the latest deals available in the marketplace.
However, interest rates are not the only consideration that should be made.
Yes, interest rates will undoubtedly have the biggest influence on the final redemption figure, nevertheless the choice of scheme is also essential be it lump sum or drawdown.
The difference in interest rates can vary between equity release schemes & this is why an Independent adviser can potentially save you many thousands of pounds during your lifetime.
The latest innovation between equity release providers recently has been a tiered structure to interest rates, dependent on the age of the youngest party to the deeds, profitability being the key here.
The lowest rate currently is the LV= lump sum lifetime mortgage at a monthly interest rate of 5.79% (6.0% APR), however this is only available between the ages of 60-65. Thereafter, the equity release interest rate increases in older age bands. (currently Equity Release Supermarket also receive a free valuation upto a property value of £400,000 – http://www.equityreleasesupermarket.co.uk/index.php?option=com_lender&Itemid=56&id=30 )
However, equity release schemes can also encompass the drawdown facility, which allows you to take a lower initial lump sum but have a reserve cash facility to fall back on in the future if required. This will therefore cater for any future expenses that you may incur, but with the knowledge that by taking a lower initial cash lump sum, the future balance will consequently be lower than if the whole amount had been taken upfront.
Enter the independent equity release adviser who can gather the relevant information, discuss your requirements & make a recommendation accordingly. This will take into account not only the lowest interest rate, but also factors such as early repayment charges, flexibility & costs.
For the latest interest rates available check our website – http://www.equityreleasesupermarket.co.uk/index.php?option=com_lender&task=list&Itemid=56. Here you will find sections headed drawdown, reversion & lump sum accordingly & deals in interest rate order.
Mark Gregory
