The main rates of capital release, particularly for a lifetime mortgage, are generally higher than standard mortgage rates. Generally, the best capital launch offers are between 3% and 7%. The best interest rate on capital release is currently 3.53%. OneFamily also offers advice for a flat fee of 950 pounds sterling, paid at the end, rather than as a percentage of the loan, so there are no hidden surprises.
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To get the lowest interest rates for stock release, contact a market-wide financial advisor who can review the entire market for you and find the lender that offers you the best deal. You can reduce the interest rate charged on capital release plans by opting for a reduction reserve, opting for staff reduction protection, choosing interest repayment, and making loan repayments. Equity release interest rates vary by plan and lender, so you may be able to get a lower than market average rate. To better understand what it may cost you to free up capital with a lifetime mortgage and compare it to other financial solutions that may be available to you, it is essential to obtain advice on releasing capital from a fully qualified equity release professional.
Some lenders also offer the flexibility of allowing you to use capital release to pay off these debts. Depending on your circumstances, you may not need the flexibility that some plans offer, and therefore you are better suited to a cheaper capital launch product. So, now might be the best time to get your free initial consultation if you're considering releasing capital and setting your rate. The interest rate on your capital release plan can have a significant impact on how much you consider releasing and how much you end up owing in the future.
Use a capital release calculator, such as the one below from the broker Age Partnership Plus, to get an idea of how much money you can unlock from your home and the likely cost. It is one of the largest capital release brokers in the UK and they are available to advise you and answer any questions you may have, such as how much does the capital release cost, how long it takes or what happens if you need more money in the future. So, if you decide to allow interest on your equity release loan to increase over time, the amount you owe will also increase.