Saga slashes cost of equity release

Tuesday 9 August 2005

Saga slashes cost of equity release

  • New rate of 6.39%pa fixed for the life of the loan (6.7% APR)
  • Fee free flexible draw down facility for further withdrawals

Saga has reduced the cost of it's lifetime mortgages, which enable people to release the equity built up in their home, by 0.65%. The new rate is 6.39% pa fixed for the life of the loan. This low rate, combined with great features makes Saga one of the most attractive equity release packages available.

The Saga lifetime mortgage could save customers thousands of pounds in unnecessary interest payments through its flexible draw down facility. Customers can withdraw just what they need and have the option of making further draw-downs as and when necessary without having to pay any further fees. This is an important feature as recent research suggests that too many people take out more than they need perhaps encouraged by eager salesmen.

Andrew Goodsell, Chief Executive of Saga commented: "It is important that people consider the entire package on offer when looking at releasing equity from their home. A good rate is of course important, however other factors to be taken into consideration are the fees charged and the flexibility of the product, should you need to withdraw further funds at a later date."

The Saga Lifetime Mortgage also offers a competitive fee structure, charging an arrangement fee of 495 and refunding valuation fees up to 280. Some lifetime mortgage providers require customers to pay two sets of solicitor's fees, both their own and their lender's, however Saga commits to using the solicitor chosen by the customer, providing they are not a sole practitioner, saving the customer one set of fees.


For further press information please contact the Saga Press Office on: 01303 771529.

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