Equity Release Calculator For Switching Equity Release Plans

Mark Gregory

Checked for accuracy and updated on 13 July 2023

Try our free equity release calculator for switching lifetime mortgages

How to use our switch plans equity release calculator

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.

By simply looking into switching equity release plans, you could uncover lots of potential savings over the course of your lifetime. Best of all, it couldn’t be easier to use our switch plan equity release calculator.

Once you’ve submitted all the information above, our switch plans calculator instantly computes what the future balance of your existing equity release plan would be. It then compares this with other rates that are currently available.

With our equity release calculators, only your property details are required for you to see how much you could release from a lifetime mortgage. Once you’ve filled in the information, your switch plans equity release calculator results are shown instantly in an easy-to-read table for you quickly compare your old plan against a new one.

You can also find personalised calculations for all other eligible equity release plans when you use smartER, an innovative equity release tool that provides real-time calculations across the entire market.

Why switch your equity release plan?

There are many reasons why you might be considering switching lifetime mortgages, with everyone having their own unique circumstances to factor in.

Some of the top reasons people might choose to switch equity release plans are:

It helps them save money. New equity release deals become 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 equity release plan several years ago, then it's likely that there’s a better plan available for you, potentially saving your estate thousands of pounds.

More opportunity to enjoy flexible features and benefits. Not only might switching equity release plans help you to find you a deal with a better interest rate, but more recent plans also offer a wide range of flexible features unavailable on many older equity release schemes. For instance, some newer benefits include: being able to make repayments, guaranteeing an inheritance, and taking cash as drawdown. There are also options where no early repayment charges apply.

Helps you sense-check 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.

It could help 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 equity release plan moving forward.

Is now a good time to consider switching equity release plans?

While there are lots of benefits included when you switch equity release plans, there are also costs attached, 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 equity release adviser will consider these charges as they could mean that it is not in your best interest to change plans right now.

Set-up 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 equity release 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.

How to compare lifetime mortgages?

Looking to compare lifetime mortgages? You can research the range of lifetime mortgages currently available to you using our compare deals functionality – a tool that’s only available at Equity Release Supermarket.

You’ll be able to view all the lifetime mortgage interest rates, along with their features and any offers from all lenders across the equity release marketplace. Alternatively, try our free intelligent smartER equity release research tool, which allows you to conduct your own research on equity release plans across the whole of the later life market.

Looking to see how much you could release from your property with a different equity release plan? Take a look at our equity release calculator page to receive an estimate for all your eligible plans.

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.