First time buyer’s plight: Another reason why brokers shouldn’t ignore the equity release market
As first time buyers (FTB) continue to struggle to get a firm footing on the property ladder, parents and grandparents are using equity release to give them a helping hand.
From strict lending conditions to sizeable deposits, the difficulties of the first time buyer have been well documented, leading to the average age of a FTB, who has not benefitted from the bank of mum and dad, granny and granddad, rocketing to 37¹.
So it is not surprising that, whilst no official study has been conducted, it is generally recognised by the industry that more and more over 55s are using the equity in their own property to provide some finance for their children’s. This is a belief shared by Andrea Rozario, Director General at Safe Home Income Plans (SHIP):
“If they [first time buyers] are struggling to get on the property ladder, then it would appear that those [that] have got equity in their property and the older generations are increasingly happy to tap into that equity to help younger members of their family”².
This situation could lead to two revenue streams for brokers: facilitate the older generation with their equity release before helping the beneficiaries of this equity in their first house purchase.
Goldsmith Williams can also assist with both cases. Our GWLifetime Team are legal equity release specialists and can explain the legal nature, implications and effects equity release could have, essential for anyone considering taking out a plan.
The Goldsmith Williams conveyancing team can then assist with the first time buyer house purchase. What’s more, first time buyers referred to Goldsmith Williams will get 10 per cent off our normal fees and £50 in Marks and Spencer or B&Q vouchers as a housewarming gift.
Content correct at time of publication