1 Month
Ask Rachel
Working in the financial industry for over 30 years, Rachel Thrussell is the leading independent expert on UK savings products. Her views are constantly in demand from both the industry and the press.
If I want to transfer my ISA, do I just tell my existing provider where I want it to go? And how long is it likely to take?
To get started, you actually need to contact the provider you want to transfer to. They will then ask you to complete some forms, but will then take control of the transfer process from there.
As to how long it will take, HMRC says that cash ISA to cash ISA transfers must be completed within 15 business days of the instruction being received by the new ISA provider. If, for whatever reason, it isn’t completed within this time, you would be entitled a refund of lost interest. It is possible to transfer between cash and stocks & shares ISAs, including funds from previous tax years. However, when searching for a new ISA, it should be noted that not all providers accept transfers in, and not all will accept transfers in from stocks & shares ISAs.
This week's
average rates
| No Notice | 0.18% |
| Notice | 0.44% |
| Cash ISA | 0.50% |
| 1 Year Fixed Rate Bond | 0.61% |
| 2 Year Fixed Rate Bond | 0.68% |
| 3 Year Fixed Rate Bond | 0.91% |
| 4 Year Fixed Rate Bond | 1.08% |
| 5 Year Fixed Rate Bond | 1.13% |
| 03 August 2021 | |
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Equity release activity returns to pre-pandemic level
Equity release can be a good way for older homeowners, particularly those who are retired, to boost their incomes and the latest figures released by the Equity Release Council shows that a growing number of people are looking to borrow via equity release.
The figures found that between April and June 20,352 new and returning customers borrowed via equity release, resulting in equity release activity returning to its pre-pandemic level. Along with the increase in homeowners looking to take equity release, the market has also become more competitive with rates falling and plans offering more flexibility.
While the market has grown and become more flexible in recent years, equity release will have a long-term impact on finances and, as such, those considering equity release should speak to an independent financial advisor first to ensure it is the right option for them.
For those interested in equity release, keeping costs down will help to mitigate the long-term impact it has on finances.
How to reduce the cost of equity release
A key way of reducing the cost of equity release is choosing a plan with a low interest rate. Fortunately for borrowers, equity
release rates have been falling this year and plans are now offering rates from as low as 2.98% AER.
Along with falling rates, many equity release plans now offer more flexibility for borrowers. For example, it is now common for plans to allow homeowners to take drawdown on their equity release, meaning that they can gradually release the money from their home over their lifetime. Interest is only payable on the amount of equity that is actually released, so the borrower only starts to incur interest charges on the money released.
Equity release plans are now often offering borrowers the ability to repay part of the interest each year or make partial repayments on the amount borrowed. For homeowners who are able to make these repayments, choosing a plan with this flexibility helps to reduce the final amount that has to be repaid when the property is sold, allowing the homeowner to leave a larger inheritance to their loved ones.
A good way for those considering taking equity release to choose the most cost effective plan is by using an equity release broker. A broker will be able to take into account the homeowner’s individual circumstances and will be able to highlight the plans that offer the lowest rate, charge the lowest fees and include the most relevant flexibility for the borrower.
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