Equity Release Interest Rates

Equity Release Interest Rates

Equity release interest rates refer to the various equity release solutions sought by mature individuals. Equity release interest rates are necessary for individuals who seek an equity release mortgage arrangement, as a means of boosting their financial income. Our experienced advisers aspire to assist mature individuals in seeking out the best equity release interest rates.

There is a variety of equity release mortgage interest rates available to clients, most differ due to the different forms of interest associated with the arrangement.

Lifetime mortgages can be obtained through three alternative schemes, with each mortgage arrangement varying in the way interest is paid back to the equity release provider.

An interest only scheme consists of the borrower paying monthly amounts of interest to the provider, whilst being able to repay the mortgage at the end of the contract. Interest rates differ on this scheme; they may be fixed or variable, depending on the regulations of the contract.

An interest rollover scheme does not permit the borrower to make any interest payments during the duration of the arrangement. Instead, the borrower is permitted to repay interest at the end of the contract term, which has been “rolled up” and calculated each month throughout the arrangement. Interest is usually variable on this scheme. Interest rollover lifetime mortgages include benefits, such as a guaranteed occupancy for rest of the borrower’s life and the borrower is not required to issue monthly interest payments to the provider. In contrast, variable interest rollover interest rates could result in a fast roll up of interest, resulting in a larger debt.

A home income plan requires the borrower to repay interest, along with the mortgage, in monthly payments instead of repaying the debt at the end of the contract. Interest is typically fixed on a home income plan. Although home income plans may lead to a reduced debt by the end of the contract, individuals may struggle to maintain monthly repayments of interest and mortgage, which may lead to severe consequences. If an individual requires assistance in selecting equity release interest rates, our specialist team are willing to guide each individual towards the ideal solution.

There are also drawdown equity release interest rates available, in which an individual is enabled to withdraw further smaller sums of capital during the term of the contract, instead of receiving the whole cash lump sum at the outset. Interest is only charged on the amount the borrower extracts. Drawdown equity release interest rates are useful as they can help avoid the escalation of debt and prevent the build up of interest on the amount borrowed.

Before an individual considers equity release interest rates, they must be aware of many risks associated with the different schemes associated with equity release interest rates and seek assistance in selecting an appropriate, cost-effective scheme. Our specialist advisers make it their job to seek the most suitable equity release interest rates, based on the client’s ambitions and financial plans.

Considering equity release interest rates? Call our advisers today.

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This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.