Finding the best equity release companies can be a very confusing and time consuming process. Whether its the number of loans you are looking to secure, low monthly repayment options or just the best interest rates on offer. The good news is that there so many great choices out there across many highly rated equity release companies. All you need to do is find one that offers the best service for your needs. Here are just some of the things to consider when selecting a provider.
Time To Completion: It is important to make sure that the repayment date you choose is the best one for your circumstances. Quite simply, if you find that you can repay your loan in less than 2 years, then you should certainly go for this option. However, if you find that it takes a little longer than this then you may want to think about choosing a lender that offers an extension. This way you can extend the term by as much as you like, taking out a larger loan. Again you need to check with the company that you are considering borrowing from. They will be able to tell you if you can extend the period and what sort of fees and charges you will be faced with.
Repayment Date: This is another important factor that you may need to take into account when looking at the various offers from lenders. Many companies will offer you the opportunity to borrow against your equity but the repayment date will vary. Again you need to check with your chosen lender. This is something that an expert will be able to advise you on, so don’t be afraid to ask. They should be able to give you an indication of which repayment terms would be best for you.
Term Life As A Whole: Most equity release providers will look at a term life plan. Essentially you agree to borrow against the value of your home for the full amount you owe, which in turn reduces the amount of interest you will have to pay. This allows you to pay off your loan in a lump sum and free up cash for spending elsewhere. However, this is not the only option available and many companies will also offer you alternatives such as borrowing against the equity in your life insurance policy or even borrowing from an existing CD or savings account.
Seniors who are aged 55 and over are a unique group of people. This is because they are generally in the best position to enjoy a lump sum return on their home through a whole life insurance policy or a separate savings account. However if you are approaching retirement age and have not yet secured any savings, then you may want to consider looking at some of the equity release deals available to those aged between 55 and 65.
If you are approaching retirement age and have yet to establish any form of savings, then you will need to take into account the ongoing monthly repayments you would have to make on your mortgage. The lower these monthly repayments are the less you will end up repaying and in turn this allows you to save money each month. This means that even if you are approaching retirement you should still ensure that you are able to keep up with these monthly repayments by changing your mortgage terms to lower your monthly repayments. However, as mentioned above, it is not the only factor to consider and you may still want to check out the different equity release interest rates for those aged between the ages of 55 and 65.