The world is changing fast and so do the prices that we pay. It would have been nice if our salaries grew accordingly, but sadly this is not the case. Just imagine if you could get more money from the things financial firms and services that you sold or provided in the past! Well, the good news is that you can actually do that with your property. With a normal equity release plan, you can actually still squeeze a considerable sum of money from your existing property on top of what you already received or are scheduled to get. You also have equity release remortgage, which is available for individuals that already have a mortgage and wish to pay off with a new loan.
Despite all the obvious pros of re-mortgaging your property at more advantageous terms you shouldn’t get all starry-eyed. Study the offered contract, look for hidden
Revise the old or get a new equity release plan from an establishment you trust or one that has a good track record over the years. Make sure to consult an equity release specialist concerning every paragraph of the contract that you have doubts about. Get a better deal, not a shady one.
A remortgage is only viable if you like the economic crises situation you are going to get into. By finding out the deals available you have a little help in choosing a better plan. To help you get started the following is going to look at an overview of product names you might remortgage for. These are specific to individuals who are in retirement and need to get that monthly payment gone.
• A drawdown lifetime mortgage is an equity release with a line of credit attached. You can take out the money you need such as a monthly payment for expenses. This does work if you have a small mortgage to do away with. However, if you have a large market the restrictions on the amount you can take out at first may not be advantageous. Luckily only the money you use gets charged interest.
• Lump sum lifetime mortgages are something you can remortgage for with a larger sum of money to help you make payments to get your debts gone. Interest is charged on the whole amount and until the loan is paid back at death or move to a care facility.
• If you have a little money to make payments, but also wish for a lump sum consider the interest only plan. In this plan, you pay out monthly interest installments keeping your principal balance the same until it is paid off.
• Illness can work in your favor if you need a large lump sum for paying off debts as there is a lifetime mortgage specific to individuals with a shorter life expectancy. Cancer, diabetes, heart issues, and obesity are some of the health conditions you can get this type of mortgage with.
The equity release switch plans tool can help people complete analysis of their existing equity release scheme and see whether it would be financially viable to complete an equity release remortgage. Call us to speak to your equity in your home local switch plans consultant.
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