What Are The Interest Rates On Equity Release?
Can Equity Release Schemes be TOO Expensive? Find Out Now.
How Do The Charges on Interest Work?
Contrasting Past vs Current Equity Release Interest Rates
Is This Expensive? A Quick Case Study:
Let’s look at the average prices of homes in London and the UK, also predictions for the capital’s property market for 2021.
You notice that:
Nationwide: London’s average touches £486,562. Nationwide reports that the annual house price growth “accelerated further” in December in the most recent house price index. It reached a six-year high of 7.3%, up from only 6.5% during the month before.
Thus, even if your property only experiences growth at 4%, with an equity release interest rate of 2.25%, your net property value will still increase.
What does this mean exactly?
It means that you will get:
• More cash from the equity release to spend as you wish today.
• Zero repayments.
• You’d remain to occupy your home.
• Assuming property prices grow according to expectation, you’d get way more extra funds in the net growth of your property.
How Can You Access The Best Interest Rates For Equity Release?
Typically, even though the equity release interest rates swing at around 5%, the rise in competition within the equity release industry has drastically forced providers to decrease their interest rates. It currently stands at a staggering 2.25% – History has never seen such a low.
Now, you can access the best equity release rates in history – alongside built-in safety components like a no negative guarantee.
The rate of equity release that your broker will offer depends on prevailing market conditions and other variables, including your age, health, and the total value of your property.
How do you ensure the equity release rates you receive are the most beneficial on the market? You must ensure to consult and utilise a financial provider that is a registered member of the Equity Release Council.
They’re obliged to inform you whether they’ll provide selective or entire market services.
Making equity release rate comparisons is simpler than ever.
Before consulting with a financial advisor, you utilise online services to compare equity release rates. You can make use of one of the many rating and comparison websites.
Such websites will typically compare entire market rates and simplify your identification of the companies which offer unique features like interest-only repayments and ring-fencing.
Here is something that you must know before you do that:
As you make your comparisons online regarding the best equity release rates, you must note the annual percentage rate (APR) instead of the nominal or advertised rate.
The annual percentage rate will include additional fees and costs, whilst the advertised rate will exclude them.
Understanding the exact costs, including fees and additional costs that you will incur with an equity release, will help you weed out products that come with unnecessary and excessive charges.
Get started today and see your money grow!
The present is the BEST time to go for equity release!
The interest rates are currently at an all-time low, and you’ll enjoy growth regarding your property. Your bank account will thank you.
It’s very tempting to only focus on the immediate advantage you will receive from the money you unlock with an equity release. Still, it would be best to look at how it will affect your overall future choices and financial situation.
With all said
It remains necessary for you to get independent advice before embarking on the journey to releasing the equity in your house. A registered financial adviser will walk you through all the specific requirements and terms – including the total cost you will have to pay to enjoy your equity release.
All this will help you determine whether equity release it the right option for you.