Equity release has been around for a while now, and it is an effective way for the homeowner to gain access to some of their equity. A tax-free lump sum allows the property owner to do many things, and with no restrictions on how the money is used, it has become a popular choice for many property owners. There have been some changes over the years, with a major provider, Northern Rock, taking a tumble in 2008. Thousands of equity release customers who had their loans with Northern Rock were unaffected by the subsequent changing of hands that followed.
This is a company owned by J.P. Morgan, and their task is to administrate Northern Rock’s business, which they have been doing since the takeover. They make sure that statements are sent on time, and the necessary work is completed when a lifetime mortgage finishes. From the customer’s point of view, there would be little or no change, with the exception that a Northern Rock customer is unable to top up their equity. While the original agreement still stands, Papilio will not accept any further equity release on the property.
Many Northern Rock customers are unaware that by changing their provider, they can make large savings with lower interest rates. If you have a loan with Papilio, you might want to consider looking around for a better package. Just Retirement offer attractive loans for equity release, as do Aviva, and might well be a better option. It costs nothing to compare, and many customers have now made the switch and are better off financially.
Access your equity when you need it
Rather than waiting until the mortgage has finished and selling the home, it is possible to realise much of the equity as a tax-free lump sum by taking out a lifetime mortgage. Many semi-retired people are finding it hard to manage financially, as the cost of living keeps rising, and equity release is the ideal way to access your equity when you need it. There is no tax to pay, and you are not limited to what you do with the money, after all, it is your profit from a property purchase.
A reputable broker
Many people are reluctant to look into changing their equity release provider, thinking that the process would be complex, and involve a fee, yet there are online brokers who can tailor the provider, giving you, the homeowner, more benefits by making the switch to a better provider. Interest rates have lowered considerably since the time Northern Rock were providing loans, so there is a good chance you would make considerable savings by changing providers. If you are unsure about your equity release plan, contact www.responsibleequityrelease.co.uk who can help you determine and compare the pros and cons.
It is never too late to save money
Even if your equity release plan is almost at an end, it could still be in your favour to switch providers, so if you are in any doubt, simply consult the experts, who can quickly tell you the best way to go.