If you want to move house you can transfer your equity release plan to your new home, providing the property meets the criteria of your equity release plan provider at that time.
All Equity Release Council plans give you the right to move to a ‘suitable alternative property’. This means a property that your provider would accept if it were setting up a plan for a new customer.
There are some properties that providers would not be able to accept, and this is usually because there would be restrictions on their ability to sell the property when your plan comes to an end. For example, homes built in retirement complexes are generally not acceptable because the provider wouldn’t be able to sell them in the open market.
If you simply want to repay your loan early then you may have to pay an early repayment charge. Before taking out an equity release plan your adviser will fully explain what these could be so you know in advance what to expect.
However, there are many flexible plans that enable you to move without charges and again, your adviser can explain all these options to you.
One last point, some plans allow you to repay up to 10% of the outstanding loan each year, or you can pay the interest monthly over the life of your plan thereby only ever owing what you initially borrowed.
Again, your adviser can discuss all of your options with you when you speak.
