Remortgage to another equity release plan in the future
If interest rates reduce in the future, you may have the option to remortgage your current plan to secure a lower rate. By paying a lower interest rate, you can reduce your total cost of borrowing. However, a reduction to interest rates in the future isn’t guaranteed.
It’s also important to remember that there may be an early repayment charge (ERC) payable if you choose to remortgage your equity release plan. However, most modern lifetime mortgages come with fixed ERCs.
At more2life, with some of our lifetime mortgages, you’re able to repay your loan in full without an early repayment charge after year eight. If this is important to you, your adviser will be able to help you understand which products are best suited to your needs.