Equity Release guide discussion

Debtfreeatlast_2

Nick_Lovell said:

Debtfreeatlast_2 said:

Does anyone know how you can find the best rates, without going through to each broker? I had a call from one and it felt like a bait and switch.  The phone call mentioned a monthly repayment figure, but every subsequent quote is £15-20 more per month to keep the capital loan at the same amount.

Also, keeps pushing to take a higher rate today with a lower redemption cost with the view to redo it in one or two years' time for lower interest, strike me the fees involved would make it would take a long time to see any benefit, apart from to the company doing it.

Any knowledge would be helpful!

@Debtfreeatlast_2 The best rate is determined by the age of the youngest borrower and the value of the property, and how much you want to borrow. The role of the adviser is to provide you the lowest cost of borrowing based on your circumstances. No-one should be recommending a rebroke for at least 6 years, or with one product 4 years to minimise the early repayment charges.Rates are currently from late 6% upwards. Happy to help if you need more info.

Hi Nick, thanks for the reply, to be fair then I have been offered 6.31% pretty sure on the initial phone call it was 6.1.

I am looking at monthly repayments like an interest only mortgage.  What sort of interest rate would it have been before Covid, Ukraine etc when base was really low, just gauge the mileage in redoing it if interest rates went lower.

Looking at a facility of 11.5% of the house value, both 59

Nick_Lovell

Debtfreeatlast_2 said:

Nick_Lovell said:

Debtfreeatlast_2 said:

Does anyone know how you can find the best rates, without going through to each broker? I had a call from one and it felt like a bait and switch.  The phone call mentioned a monthly repayment figure, but every subsequent quote is £15-20 more per month to keep the capital loan at the same amount.

Also, keeps pushing to take a higher rate today with a lower redemption cost with the view to redo it in one or two years' time for lower interest, strike me the fees involved would make it would take a long time to see any benefit, apart from to the company doing it.

Any knowledge would be helpful!

@Debtfreeatlast_2 The best rate is determined by the age of the youngest borrower and the value of the property, and how much you want to borrow. The role of the adviser is to provide you the lowest cost of borrowing based on your circumstances. No-one should be recommending a rebroke for at least 6 years, or with one product 4 years to minimise the early repayment charges.Rates are currently from late 6% upwards. Happy to help if you need more info.

Hi Nick, thanks for the reply, to be fair then I have been offered 6.31% pretty sure on the initial phone call it was 6.1.

I am looking at monthly repayments like an interest only mortgage.  What sort of interest rate would it have been before Covid, Ukraine etc when base was really low, just gauge the mileage in redoing it if interest rates went lower.

Looking at a facility of 11.5% of the house value, both 59

The rates going back 3+ years would have sat around 3.5% upwards, they are geared off the 15 year Gilt rate, not the BOE rate, but of course Gilts have gone up in line with interest rates. £30k as an example would be at around 6.43% upwards now, or a few bps higher. About £163 a month to service the interest. However, if you have income to support then a retirement interest only mortgage may be an option and could be around 6.15%. Not much in it though, but early repayment charges would be better on a RIO.