More homeowners realising the benefits of equity release
Equity release lending is at its highest ever levels since records began as more homeowners are unlocking some of the value in their home.
In 2014 £1.38bn of equity was released by older homeowners, surpassing the previous pre-recession record of £1.21bn in 2007. The final quarter of the year saw a year-on-year growth of £55.5m to £365.7m.
With pension reforms set to come into force from April, there are expectations for further growth.
Richard Espley, Head of Equity Release at Goldsmith Williams, explains how equity release can help older homeowners in a number of ways:
“It is fantastic to see that equity release is now being recognised for what it really is instead of being plagued with negative connotations of the past and what it is a viable funding solution for retirees.
“It allows a homeowner to unlock some of the value of their home without having to sell it. Despite what some may fear, homeowners taking out equity release remain the owners of their home. The amount released is then repaid when the property is sold, either when the last owner passes away or goes into care.
“There are many reasons why homeowners are turning to equity release, from compensating for a poor pension or savings to paying off an interest-only mortgage, providing children and grandchildren with an early inheritance often to help them get on the property ladder themselves or to simply have the retirement they dreamed of.”
Content correct at time of publication