Remortgage for equity release - do it whilst rates are low.
A remortgage for equity release can be an easy way to raise finances for home improvements and this can often be cheaper than moving house with all of its associated fees. This is becoming the route for many home owners who have want a better home but either can't sell or see the value in the cheap lending offers on the mortgage market at the moment.
Choosing a mortgage deal however can be quite complicated when checking all of the terms and conditions and therefore time consuming for the home owner. The main choice of mortgage to obtain equity release is usually a tracker mortgage or a fixed-rate mortgage deal.
If you are currently on your mortgage lenders SVR (standard variable rate) then you could presently have an uncompetitive mortgage rate. Changing to a fixed-rate mortgage can offer equity release for the home owner and also the safety net of the equal repayments over the mortgage term. The Co-operative Bank has reduced one of its three-year fixed rate mortgages to 3.69 per cent for loan to value of 85 per cent. Fixed rate mortgages are currently very popular with those borrowers who like to set their monthly outgoings.
Many mortgage providers offer lifetime tracker mortgage deals which with the present low interest rates present an opportunity for the home owner to ensure equity release at a low rate. Again the Co-operative Bank has lifetime tracker mortgages for those with loan to value of up to 75 per cent with a rate of 2.79 per cent that secure borrowers an excellent deal. As the Bank of England's base rate rise is predicted to not be for some time yet home owners may want to take advantage of lifetime tracker offers.
