19 – What are the benefits of using equity release to pay for care
FLEXIBILITY – It is an attractive option for couples and individuals considering how to fund care in the future or in the short-term because it is flexible and requires little disruption or upheaval.
REMAIN AT HOME – Equity release plans enable the homeowner or homeowners to remain at home, enjoying the same quality of life, without compromising in the short-term.
INSTANT ACCESS TO MONEY – It provides instant access to money, which you are free to spend however you like.
This is an attractive prospect for individuals needing care who wish to remain at home in the long-term, as it enables them to remain where they are whilst providing ample funds to pay for care at home in addition to necessary modifications or maintenance.
It may also be useful for couples in the event of one person needing residential care – as one spouse or partner can remain at home whilst the other can enjoy the quality and level of care they require.
20 – Can I remortgage to release equity in my home?
If a traditional equity release plan isn’t an option for you, you may consider remortgaging to take out equity from your property. This is an option to look at when looking at paying for care.
If you are looking to remortgage to release equity in your home then this involves taking out a new, larger mortgage to cover the remaining balance on your property and release a fixed sum for you to use however you wish.
Remortgaging can be complex and risky, and should be conducted under the guidance of a financial professional who can act with your interests at heart.
21 – Can I get equity release if am are under 55?
We often get asked if it is possible to get an equity release mortgage if you are under 55.
However, unfortunately, it’s not possible to apply for it if you are under 55.
Traditionally they were only an option for individuals over the age of 65 – however, in recent years, policies have become increasingly flexible.
It’s now possible to apply for equity release with selected providers from the age of 55 upwards.
22 – What impacts interest rates and where are the best equity release deals 2020?
As interest rates rise and fall, equity release mortgages are naturally influenced and interest rates in 2020 vary between companies.
Some mortgages will be based on ‘static’ or ‘fixed’ rates, whilst others are variable and subject to inflation. What you take out depends on your circumstances and what guarantees you need.
When making a decision regarding your suitability for equity release plans, it’s key to investigate the amount of interest you’ll be expected to pay. Browse providers and work out how much you will need to repay once the contract is terminated.
Some options enable low monthly repayments to cover interest accrued, so you will only be liable to pay back the loan itself when the contract comes to an end.
The mortgage interest rate that you will get will typically depend on the amount of loan to value (LTV) you are taking.
However, typically you would see rates starting around 3% going up to about 7%. As you can see, the range of lifetime mortgage rates that you can get is very wide. That is why we strongly recommend that you speak to a specialist to help you find the most competitive rate.
Here are the leading equity release interest rates in 2020. However, the rates can change daily so you should ring the number below for the most up to date information.
Best Equity Release Rates as at 1 November 2020