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.
IMPORTANT TO KNOW
At Bower Home Finance, we will understand your unique circumstances and advise you to ensure you are receiving the best plan to meet your objectives. There are plans that allow you to make voluntary repayments and move home, subject to lender criteria. However, early repayment charges may apply in certain circumstances.
Bower Home Finance provides independent, impartial whole of market equity release advice with an award-winning customer service experience. Initial advice is provided at no cost to you and without obligation. Only if you choose to proceed and your plan completes, would a typical advice and administration fee of £1,695 be payable.
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care. Equity release will reduce the value of your estate and your entitlement to means-tested benefits now or in the future, and impact long-term care funding. If you are considering equity release, we strongly recommend that you read our Equity Release page carefully and talk to one of our specialists before deciding if you wish to proceed.
To find out more about any of the products and the service we provide, please call us on freephone 0800 411 8668, request a call back, email us, or use our live chat on our website.
Please be aware that equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. All features and risks are thoroughly explained in your free personalised illustration.