Older homeowners have a ‘growing pool of equity’
Rising property values in some parts of the country means that older homeowners have an increasing amount of equity tied up in their home. This expanding funding option is in stark contrast to annuities, savings and pensions so it is not surprising to see an increasing number of homeowners turning to equity release to help ensure a comfortable and stable retirement.
95 per cent of the total equity released last year has already been borrowed in the first nine months of 2014. Many of those opting for equity release are enjoying the 10.2 per cent average annual house price rise by releasing on average £67,467, the highest level since 2002.
Richard Espley, Head of Equity Release, comments:
“In this cash poor era it is comforting that many retirees are still able to relax and enjoy their twilight years by tapping into their biggest financial asset.
“What’s more rising house prices means homeowners are more likely to be able to preserve a proportion of their home’s value.”
Despite this growing popularity equity release may not be the most suitable option for everyone. This is why borrowers must seek specialist financial and legal advice before committing to a plan as Richard explains:
“A financial adviser can explain the monetary implications of equity release as well as helping you find the best plan for you and your situation. Lifetime mortgages are usually a lifelong commitment to a mortgage on your property so it is very important that the potential for early repayment charges is highlighted to customers.
“When it comes to equity release, having an independent specialist legal adviser is essential as they understand the various plans available and will provide advice relevant to the customer’s chosen plan.
“Our dedicated team are on hand to guide you through your equity release transaction, answering any questions you have along the way as well as ensuring that your best interests are protected at all time. Our unique home service also means that we will visit you in the comfort of your home and at a time to suit you – all at no extra cost.”