This is a question which has become increasingly common!

The most common form of an Equity Release mortgage is a lifetime mortgage. These types of mortgages are not for everyone, so it is so critical to ensure sound independent advice. Ultimately, an independent mortgage adviser, who is a specialist in these types of mortgages, MUST ensure it is suitable for their customer. If not, then they would advise against it.

Sadly, many years ago, regulation in this field was not as comprehensive as it is now, and it is feasible that this type of product was mis-sold!

If I rewind the clock to August 2016, there were only 58 of these products available. The average product rate was 6.2%*

Now, in February 2021 the number of Lifetime mortgages available is circa 200 with the cheapest rate on the market standing at around 2.4%**

The benefit of having this competitive marketplace is that the cost of these mortgages has plummeted.

If you took out £100,000 with the interest rolling-up in August 2016 at a rate of 6.25%, then the amount outstanding after ten years would be £182,492.

If you opted for the same £100,000 now at the best rate in the market at 2.4%, in ten years the amount outstanding would be £126,765. That is a huge saving of £55,727.

With these numbers, you can see why many consumers are looking to re-mortgage their Equity Release mortgage.

With re-mortgaging a Lifetime mortgage, an independent mortgage adviser will look at any existing redemption penalties and calculate when the new mortgage makes financial sense. This calculation must be assessed before any decision is made to ensure you make an informed decision.

If you feel your Lifetime mortgage needs a review then please do contact us. Our advice is free and we will never charge you a fee.

*Source: Equity Release Council Market report Autumn 2017
**Source: iress. 09th February 2021

Equity Release will reduce the value of your estate and may affect your entitlement to means-tested benefits. A Lifetime mortgage, the most popular form of equity release, is a loan secured against your home