There are many people in the UK who took out an equity release plan with Northern Rock, a building society that was once flying high, alongside Aviva and Portman, and were a major lender in the expanding equity release market. Then came the credit crunch in 2012, and Northern Rock were hit hard, and sold off their mortgage book to Papilio UK Equity Release, who became the new administrators, and they then handled all enquiries from Northern Rock customers.
If you have taken out an equity release loan with Northern Rock, and would like to increase that, you are unable to do so, as Papilio will not accept any further loans on the property. On top of this, you will be paying 1.3% more than other borrowers in the same scenario. Just because the package was taken out many years ago, that doesn’t mean you cannot change providers, and by switching lenders, you can save thousands of pounds.
Make the change
Some people think that their equity release plan is set in stone, however, it is quite straightforward to find a provider with a lower rate of interest. When Northern Rock were in business, interest rates were higher than they are at present, and if you think you fall into this category, take a look at www.responsibleequityrelease.co.uk and you can quickly determine whether you can start to save money. They have a unique equity release calculator, and by entering the right information, you can quickly discover how much you can save by making the switch to another provider. There are still thousands of Northern Rock customers who have yet to realise how much they could save by switching providers, also, by changing the lender, you can continue to draw equity on the plan.
Northern Rock customers have experienced several changes, when Papilio were bought out by J.P. Morgan, then a further move to Phoenix, the current mortgage book holders. This does not mean that the borrower cannot transfer the plan to another provider, indeed many people have already realised the benefits of making the switch to a better provider.
There are reputable providers, such as Aviva, L&G, and Just Retirement, and all offer a flexible package with low rates of interest. A reputable broker can quickly establish if a borrower is getting a good deal, and in the event a switch is in order, the broker can find the best provider.
Modern finance involves brokers who tailor plans to the client, and with many associations with all types of lenders, they can usually find the best plan for the customer’s individual situation. If you are 55 and over, you can take tax-free equity from your property, by taking out an equity release plan.
More and more homeowners are realising the benefits of equity release, and are able to use a portion of their assets at a time in their life when they require it. If you are 55 or over, and are looking for a chance to release some of the equity in your home, there are providers who offer a low rate of interest.