Could You Save Money or Access More by Switching Your Equity Release Plan?

A lot can change in just a few years — including interest rates, house prices, and even your personal circumstances. If you arranged an equity release plan over a year ago, now could be the perfect time to review it.

Many homeowners are surprised to find they can switch to a more competitive deal, access additional cash, or cut down on long-term interest — all without moving home or starting from scratch.

Let’s explore how equity release switching works — and how it might benefit you today.

Lifetime mortgages are designed to last, but they’re not set in stone. If you took out your plan when interest rates were higher, or if your home’s value has increased, switching could offer some real advantages.

A new plan might allow you to:

• Secure a lower interest rate, reducing how much you repay overall
• Release more cash, especially if you’re older or your home is now worth more
• Access enhanced terms, if your health or lifestyle qualifies
• Choose flexible features, like interest payments or inheritance protection

Even small changes in rates or age can have a big impact — and could make a substantial difference to what you or your family keep in the long run.

To show what’s possible, here’s a fictionalised case study based on typical figures.

Imagine a homeowner who borrowed £85,000 through a lifetime mortgage back in 2020 at an interest rate of 5.15%. Fast forward four years, and they’re eligible for a new plan with a rate of 4.28% — nearly a full percentage point lower.

Let’s compare the projected repayment over time:

That’s over £22,000 in potential savings simply from switching to a more competitive rate.

Of course, the exact figure will depend on your loan amount, term, current rate, and whether early repayment charges apply — but the potential benefits are well worth reviewing.

Possibly. Here’s why:

• You’re now older, and equity release amounts typically increase with age
• Your home may have increased in value since your original plan
• You may now qualify for enhanced terms if you’ve developed health conditions or lifestyle factors (like being a former smoker)

An enhanced lifetime mortgage can allow you to unlock a larger percentage of your home’s value or benefit from lower rates than standard plans.

A regulated adviser can assess your eligibility and help you calculate your updated borrowing potential.

Switching plans isn’t as complicated as it sounds. With the help of a qualified equity release adviser, it usually follows these simple steps:

1. Review your current plan
   Your adviser will assess your current rate, loan terms, and any potential early repayment charges.
2. Compare the latest plans
   They’ll search the whole market to find deals that suit your age, health, property, and goals.
3. Check your options
   You’ll get a clear breakdown of how much you could save or release — and what features (like interest repayments or inheritance protection) you could add.
4. Decide if it’s right for you
   If switching makes sense, your adviser will guide you through the process — and help you make the move smoothly.

As with any financial transaction, there are some potential fees — but they’ll always be explained clearly before you commit.

Typical costs may include:

• Valuation fees from the lender
• Arrangement or completion fees (sometimes waived or added to the loan)
• Legal/solicitor fees for the new agreement
• Early repayment charges on your current plan (if applicable)

Initial advice should always be free and without obligation — and you’ll only pay for the advice if you go ahead with the switch.

Yes. If you’re relocating, you may be able to port your current lifetime mortgage to your new property — but that’s not always the most cost-effective route.

Switching to a new plan when you move could allow you to:

• Access a better rate
• Borrow more based on the new property’s value
• Add features that weren’t available on your old plan

A good adviser will help you weigh up your options and choose the best approach.

Switching lifetime mortgages is regulated and safe — but there are still things to consider before making the move:

• Compound interest adds up over time, especially if no repayments are made
• The value of your estate may be reduced, affecting your inheritance
• Early repayment charges may apply, depending on your current plan
• Means-tested benefits may be affected by additional cash releases
• Gifting released funds may impact inheritance tax liabilities

That’s why expert advice is essential — to make sure you understand the full picture.

Equity release isn’t something you have to set and forget. A review — even just once — could reveal opportunities to:

• Reduce the cost of borrowing
• Access additional funds
• Add new protections
• Better support your family or retirement plans

If you’ve had your plan for a year or more, it’s worth speaking to a qualified adviser. They’ll look at what you have, compare it with what’s now available, and help you make an informed decision.

It’s quick. It’s free to explore. And it could save you — or your loved ones — thousands in the long run.