Credit Crunch | Equity Release UK

Search Online for the Best Equity Release Deals

Posted by Stephen Hall + on March 25, 2014

Retirement is an incredible part of life that allows older men and women to sit back and relax after they have spent their lives working and taking care of their families and homes. Those going into retirement will enjoy a certain amount of money each and every month; however, some retired people will find that the amount they are receiving is simply not enough in general or is not enough for them to enjoy added benefits such as carrying out home improvements or setting up a savings account for their grandchildren.

One easy way to obtain more money is by considering equity release. Since the credit crunch hit in 2010, equity release schemes have built their way back up to the top of the popularity charts and are now offering customers incredible equity release deals. The current crop of offers have arisen due to the increasing amount of competition the industry has brought upon itself. One which is proving cost effective is the equity release cashback deal and is only one of several benefits which are available when applying for an equity release currently that will give retired people the resources to live and improve their lives upon.

Deciding to get an equity release cashback deal at this moment this time will undoubtedly give you many options to consider. This will include whether a cashback deal is of value, as it may have an influence on the interest rate. For instance the Aviva Flexi plan now comes with the option of £0 cashback, £500 cashback & £1000 cashback. However, the more cashback you take, the higher the interest rate becomes. Therefore, a larger cashback would benefit the smaller releases. Conversely, the lower cashbacks would help the larger releases as they would benefit more from a lower interest rate.

However, don’t just choose an equity release provider because they have the biggest cashback deal! There are many facets of these plans that need analysis and it is important to do plenty of research between the various companies and the deals they provide to decide which plan is right for you.

All these equity release deals only apply on lifetime mortgages which are now the most popular form of equity release scheme available. As such, lenders are pushing their products aggressively with the resultant effect being a competitive marketplace.

With some equity release cashback deals also comes a free valuation, which means that NO upfront fees will be required by the lifetime mortgage companies. Therefore, at both ends of the application process you have money saving features to benefit your pocket on the overall set up costs.

Finally, to top off the great equity release deals currently available, the interest rates on equity release schemes are now the LOWEST they have ever been. For example the Aviva Flexi plan has rates now starting from 5.57% which is a considerable fall from the equity release interest rate highs of over 8% many years ago. The market has certainly taken some huge strides ever since those days.

Those who are retired deserve nothing but the best. If you find that you simply don’t have the amount of money you would like, consider an equity release. With the market providing cashback deals, free home valuations as well as incredible interest rates, it has never been a better time to consider a release of equity.

Finding The New Administrators Of Northern Rocks Equity Release Mortgage Book

Posted by Stephen Hall + on March 25, 2014

If you are one of the old benefactors of Northern Rock Equity Release then you should be aware that Northern Rock do not write new equity release business any longer. This doesn’t means that your deal is over but in fact, they have sold off their equity release mortgage book to Papilio UK Equity Release Mortgages Ltd who are now responsible for managing all those old completed cases which were originally taken out with Northern Rock Equity Release.

There was a time when Northern Rock stood nothing less than the other major equity release lenders such as Aviva, Portman Building Society, Hodge Lifetime and even In Retirement Services. They got in deep trouble with the credit crunch that swept the financial world leaving them as one of the worst affected. After the sell off in March 2012, Papilio UK Equity Release became the new administrator, who are now handling all the enquiries of customers belonging to Northern Rocks equity release book.

If you are trying to enquire about taking some more cash from your home equity loan which was originally offered by Northern Rock, then you must know that the new Papilio administrators don’t allow you to take any further loans on your home. Apart from that, you might be shocked to hear that the rate of interest that you are paying to them is approximately 1.3% more than what the other lenders are offering in current scenario’s. Therefore, rather than struggling on thinking your bridges have been burnt, get some financial advice on this matter.

Considering the power of the compounding interest, you should consider the potential savings you could make by switching to another equity release lender who is offering a much better rate of interest.

An equity release remortgage is therefore one angle that should be explored further. This option could be exercised as it not only promises you a huge saving on interest in the long run, but also the new lender may be able to assist with further borrowings on top. Therefore you can opt for an immediate release of equity or even have a cash reserve to be accessed at any time in the future via a drawdown lifetime mortgage basis.

If you are worried about repayment and other miscellaneous charges on account of closure of your original Northern Rock equity release mortgage then take a breath of relief. The total set up cost to switch over is not as much as you might anticipate.

Currently, Papilio are letting customers go with NO early repayment charge given that they wish to reclaim their initial investment. You can find many current equity release brokers offering free advice and free valuations as well as cashbacks up to £1000 upon the remortgage of your property. Looking diligently, you can even strike on the interest rate as low as 5.57% per annum.

With interest rates never been so low & having the security of fixing them at today’s rates for life, never has there been a better time to review your old Northern Rock lifetime mortgage.

Call 0800 678 5159 if you require further assistance about contacting Papilio UK Equity Release Mortgages Ltd.

Tags: Aviva, Credit Crunch, Drawdown Lifetime Mortgage, Early Repayment Charge, Equity Release Brokers, Equity Release Business, Equity Release Lenders, Equity Release Mortgage, Equity Release Remortgage, Hodge Lifetime, In Retirement Services, Interest Rate, Northern Rock, Northern Rock Equity Release, Papilio, Papilio UK, Papilio UK Equity Release, Papilio UK Equity Release Mortgages, Portman Building Society

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