After completion in an ever changing market place and in line with your own changing circumstances, we constantly monitor what options may become available that may be of benefit to you and your estate and make any necessary arrangements for you to benefit from if required and appropriate.
Many people consider a re-broke just as you would with a normal mortgage to benefit from a better rate of interest therefore reducing the amount of interest accruing over the plan, so increasing the benefit to the estate or to release additional funds at a more advantageous rate of interest.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Over the past 5 years as the Lifetime Mortgage market has become a mainstream trusted solution, many new lenders have entered the market place meaning that the Lifetime Mortgage market place is extremely competitive and therefore interest rates have steadily been reducing.
The following are just three examples of where a regular review of your needs and current Lifetime Mortgage can make a huge difference to your life, and the wealth of you and your family.
CASE STUDIES
Mr & Mrs M from North Yorkshire had originally taken out a Lifetime Mortgage back in 2014. Mrs M was only 58 years old and the best plan at that time attracted an interest rate of 7.25%. Sadly shortly after Mr M passed away and on Mrs M attaining her 60th birthday, we decided to see if there was a better option available that would not only reduce the rate of interest, but also perhaps release a little more funds just to help her along with improvements to her home and repay funerals costs.
We successfully re-broked the plan to a new interest rate of 4.66%, released a further £17,000 to help her improve the quality of her life while also benefiting from reducing the amount of interest rolling up giving a saving of £52,000 over the next 15 years, and £92,000 over the 20 years to benefit her estate.
Mr & Mrs W from Guildford had taken out a plan in 2015 following an illness that meant Mr W had to retire early but still needed to repay the mortgage and some debts totalling £80,000. At that time the best rate of interest available was 6.44% as they were seeking the maximum release from their property. As we regularly review our clients portfolio every two years, we found that in 2018 we were able to secure a new lower rate of 4.16% with a new provider meaning that over 15 years this would save the estate £67,000 and over 20 years a total of £111,000 to the eventual benefit of their children and grandchildren.
Mr & Mrs P from Otley had taken out a lifetime mortgage in 2016 to have some home improvements completed and a newer car at a rate of interest of 4.35%. The plan they had in place also had a drawdown facility meaning that they had an extra £52,000 available as further borrowing. Their granddaughter was getting married in 2018 and they wanted to make a contribution to the wedding, the honeymoon and give her and her husband to be a gift as a deposit for a home to get them onto the property ladder.
They initially asked us to arrange for a further £40,000 of funds to be released from their drawdown facility to enable them to help.
On checking with the lender, they were happy to make the borrowing available however, the rate of interest for the new money would have been 4.83%.
We checked the value of re-broking the whole plan to include the additional funds required and found that by consolidating and re-broking we could secure a rate of 3.89% for all of the monies giving a saving of £13,200 over 15 years and £22,500 over 20 years while enabling them to give an important gift and head start to their Granddaughter.
To find out what the potential benefits to you may be please feel free to call us for a no obligation free consultation.
In an ever changing and busy world where we are enjoying better health, living longer and possibly working until later in our life, if an appointment during normal working hours is not possible or you wish to have a family member or friend present with you then we are happy to accommodate a time to suit all those concerned.
You may have to pay an early repayment charge to your existing lender if you remortgage.