Lifetime mortgages are the most popular retirement schemes available today. Many people have found lifetime mortgages to be very helpful for the fact that they are able to enjoy their retirement life like never before. By receiving money from this scheme clients can start to compensate for the way that state pensions are used to fund their long term care or to even help their children’s future; the lifetime mortgages are easy, convenient and beneficial at old age. However, it is important to bear in mind that the lifetime mortgage rates are quite volatile.
The lifetime mortgage rates change depending upon the current economy. There can also be a change depending upon your financial past. So, when you are looking at finding the best mortgage rates, you need to understand the influence of these aspects. The best thing to do is to keep yourself updated with the latest information about the lifetime mortgage interest rate changes.
Finding Information on Rates
When you are looking at information on the latest lifetime loan rates, it will be helpful to consider reading the regular updates online. The internet is one of the best sources of information and specifically when you are looking for latest updates. You can easily browse through the reputed websites that offer financial information to understand the latest lifetime mortgage rates and you will be impacted with your existing lifetime mortgage. Understanding and staying updated with the lifetime loan rates is important not just for people who already have a lifetime mortgage but also for people who are willing to take one.
A good idea to stay updated with the latest information on the lifetime loan rates is to subscribe to certain websites that deal with home equity loan or retirement planning. Here, you will be given information about rate changes as and when they happen. This will help you immensely with your financial planning.
Another good online source for your information on interest rate changes with lifetime mortgages is to subscribe to the news feed of reputed finance bloggers who offer necessary information on this subject. You can also join Google + circles of such bloggers and industry experts to stay informed so that you take wise decisions.
Watching Economic News
The Internet is a great place to find information as you search for lifetime mortgage products; however, you can also keep up with what is happening in the mortgage industry by watching the news. The news will always have a little snippet about the economy and interest rates. There are also special channels that broadcast only economic news such as the stock market news and bank rates.
An important factor about lifetime mortgages and their rates is the Bank of England basis rate. The BOE has the base rate for all mortgage products including lifetime mortgages. If the base rate from the BOE is at .5% interest, then you may see a rate of 4 to 7 per cent from a mortgage lender. This is because the mortgage lender or bank is buying a product as a reduced interest rate and to make money they will increase what they charge you. As you should be aware with any mortgage product interest is how the bank makes a profit. How much profit is based on the base rate from the BOE, the bank or intermediary they bought the loan through and then what they charge you as a fair rate.
If you read news that the base rate at the Bank of England is going to increase, you can expect in a month or two to see all mortgage rates including lifetime loan rates increase.
Comparing for the Best Rates
You now have two sources that you can use to follow mortgage rates for lifetime equity release. The next thing you want to do is to compare the different products available to see which company is willing to offer the best rate to you. Interest rates are always going to depend on the lender and your circumstances.
A few things can make your rate better even with lifetime mortgages:
1. Your credit history
2. Your pension
3. The home value
4. Your age i.e. life expectancy
5. The type of lifetime mortgage
Even though lifetime mortgages are grossly different from regular mortgages there are still varied rates that could be tacked onto your account especially with interest only mortgage products. Your best option is to gain a low, fixed rate. Some prefer their lifetime mortgage rates to be varied because the rate might decrease during the long lifetime of the loan; however, this can also mean a significant increase in the rate.
Our clients are satisfied with their new lives!
National Equity Release Pension Conference, Bath Street, Bakewell, Derbyshire, DE45 1BX.
You can also contact us by phone , or you can send us a message here: