Should I Swap Equity Release Plans?

If you have read our latest blogs, you should have some understanding of what equity release is by now. If you haven’t, now is the time! 

Just as you are able to remortgage your home, it is possible to change your equity release plan from one provider to another. You may find that as average interest rates for equity release plans have dropped, your current rate is no longer competitive or it just doesn’t meet your future needs. This article will explain some of the many reasons as to why it might be worth switching from your current provider to a new one. 


It is not as straightforward as switching from one lender to another. For a switch to be viable, there are many factors that will need to be considered. An example being any early repayment charge clauses. This is a penalty that applies to specific equity release plans, it can be a fixed percentage based on a total amount borrowed or be on a scale. 

It is important to have a thorough look into every equity release company and see what charges they enforce. If the penalty is high, it can make the switch entirely unviable even if the interest rates are significantly lower.

Reasons To Switch:

Swapping your current plan to a more competitive one could be beneficial for you.

Save Money

You could save money as you may find that the interest rate on your current plan is no longer as competitive as it once was. This does depend on when you took out your equity release plan. There is a constant stream of new deals becoming available and they also offer additional benefits such as cash back, low set up costs, no application fees and free valuations. By swapping from your current equity plan to one with more competitive interest rates you could potentially save thousands of pounds over the years that the interest rolls up. It could also have a dramatic effect on the future balance on any roll up lifetime mortgage schemes. Not only can it increase your beneficiaries inheritance, but you could also benefit from further equity being made available in the future. 

Access To More Money

This tends to be the reason why most people switch plans. If you are wanting to access money by borrowing more on your lifetime mortgage, you can always go straight to your existing lender. If you choose to do so, they may agree to do so at current market rates but the original loan could remain at the same rates. Therefore, is it always a good idea to look around and seek advice to see if there are more suitable deals available.

Latest Features

Switching to a new equity release plan could open you up to new flexible features that your current plan does not provide. New features could include downsizing protection, enhanced plans that give you access to more cash, inheritance protection and no early repayment. If your current plan does not provide these features, you can switch to unlock these additional benefits. Additionally, your circumstances may have changed, which means you can benefit from other features. For example, should your health have deteriorated, then an enhanced lifetime mortgage scheme could now offer a much larger amount than older equity release schemes. Providers now use medical underwriting and actuarial calculations on life expectancy so these enhanced plans can allow for a larger lump sum if ill health persists.

Greater Flexibility

Older equity release plans tend to only offer a simple lump sum contract. This meant that holders needed to estimate the sum needed in the future and place this money into the bank. This wasn’t necessarily the best method. These surplus funds being held in a bank account did not attract a greater interest than that being charged on the equity release plan.

What Fees Do I Need To Consider When Switching Equity Release Plans?

Valuation Fees- Usually paid upfront on your application and depend on the state market value. The higher the property valuation, the more costly the valuation fees. Make sure you look out for equity release providers that offer a free valuation! 

Application Fees- The equity release plan provider will typically deduct the application fee upon completion. Some providers will add the fee to the loan but remember it will attract compound interest. 

Solicitor Fees- You will have to consult a legal advisor who is separate from the mortgage provider. The solicitor will help you to understand the legal requirements of the equity release mortgage. These fees are unavoidable, make sure you look around to find a good deal with someone you can trust! 

Interest Rates- The most important fee! It is key that you look into the interest rates of the new plan to determine if it is worthwhile shifting from your current one.

How Do You Switch Equity Release Providers?

If you think your current equity release plan is no longer competitive, whether that be due to you paying too much, it being no longer suitable or if you are looking to release more equity, it may be worth switching. Changing to a new provider with a different deal could be exactly what you need. 

Equity release experts are on hand to help guide you through the process. They will assess your current arrangement and establish whether it is viable to make a switch. They will look through the market and find the best deals that are suitable for you. Experts will be able to factor in your individual circumstances and requirements to help you make the best decision on the most suitable plan for you.

Contact Robin Mortgage Design

We hope this article helps to explain the reasons as to why you should swap equity release plans. It is always advised to discuss with advisors if you are thinking about switching equity release plans. Here at Robin Mortgage Design we are partners with equity release advisers who are here to help you. To get in touch, please give us a call on 0333 242 386 or fill out our online enquiry form.


Equity Release includes Lifetime Mortgages and Home Reversion Schemes. The specialist third-party we will introduce you to is only able to advise on and arrange Lifetime Mortgages, and will refer to an approved specialist for Home Reversion schemes.

After you have registered your interest, one of our consultants will be in touch to discuss your options and where appropriate, make a formal introduction to a specialist third party. There may be a fee payable which will be confirmed to you by them.

The information in this blog is only valid for the date it is written. 13th July 2022.