Switching Equity Release Providers

Mark Gregory

Checked for accuracy and updated on 26 January 2023

How to use the switch plan equity release calculator

Using our switch plan equity release calculator couldn’t be easier - simply provide us with some details of your current lifetime mortgage. If you are thinking of changing your existing equity release plan, then our switch plans calculator will help you understand whether this could be a viable option for you.

Our switch plans calculator instantly computes what the future balance of your existing plan would be. It then compares this with other equity release plan rates that are currently available. Our clever calculator also factors in things like the costs associated with changing plan and any early repayment charges being incurred.

Results are displayed in an easy-to-follow format so you can quickly compare your old plan against a new one. This helps to establish what year the break-even point will be i.e. the year when switching plans becomes profitable.

This analysis tool makes it easy to see the money you could potentially save over time by switching plan.

Why switch your equity release plan?

To save money. New deals are becoming available all the time with the benefit of low set-up costs - including free valuations and no application fees. So, if you took out your plan several years ago, then it's likely that there’s a better plan available for you – that will potentially save your estate thousands of pounds.

To take advantage of flexible features and benefits. Not only are we likely to be able to find you a deal with a better interest rate, the latest plans offer a wide range of flexible features unavailable on many older equity release schemes. You now have the potential to make repayments, guarantee an inheritance or take cash as drawdown. There are also options where no early repayment charges apply.

Before ‘topping up’. If you are looking to release more money from your existing plan, then this is the ideal time to see if there's a better deal available. Although any top-up may be at current market rates, the original loan could still be on non-competitive terms. Your local Equity Release Supermarket adviser will help guide you through whether a new plan would be a viable option.

When transferring to a new property. Should you be looking to transfer your existing plan to a new property, it may be worth checking whether it’s still the best option for your new home. It’s also a good time to review your personal situation and check the features on your next plan moving forward.

Things to consider before you switch

As you may expect, there are costs associated with switching plan, which you need to be aware of before taking the next step.

Early repayment charges (ERCs). Many older plans have significant ERCs as they weren’t designed to be repaid early. Your adviser will consider these charges as they could mean that it is not in your best interest to change plans now.

Costs. Setting up a new plan will incur potential costs. These will vary depending upon the plan you want to move to, but we’ve estimated these at £2,000 in our calculations.

Interest. If you do switch plans, daily interest will continue to accrue on your current plan while your application is in progress. Your adviser can help factor in a further 60 days interest when calculating the exact amount required on application.

We have assumed a default interest rate of 5% AER. However, if you have a specific rate you wish to compare against, then you can personalise your free switch plans analysis to whatever new rate you feel is appropriate.

The Switch Plans Calculator is provided for illustrative purposes and cannot be guaranteed. This is because interest rates are subject to change and can depend on your location and the amount of capital you need to fulfil your personal circumstances. To understand the features, benefits and risks of a lifetime mortgage, please contact us and ask for your own individual, personalised illustration.