26 Apr Equity Release – More Choice Than Ever Before
Borrowers have more choice than ever before, as the equity release market tops 500 products for the first time.
Equity release continues to grow in popularity and the market is evolving to meet the growing need. According to Moneyfacts.co.uk, the number of equity release products on the market has topped 500 for the first time on record.
Lee Howard, Howard Mortgages said:
“The equity release lenders are clearly working hard competing to cater for increased borrower demand. Since the start of April, lenders have continued to launch new products with record low interest rates. This offers a great variety of choice and overall the market remains resilient despite the pandemic.”
Equity release – involves borrowing against the value of your home with a “lifetime mortgage” — a loan paid off when your property is finally sold. While increased regulation has removed some of the pitfalls for consumers, full background research is essential with the help of a qualified financial adviser with access to a wide variety of lenders and products.
According to the Spring 2021 report from the Equity Release Council, the volume of new lifetime mortgages taken out during H2 2020 rose by 19% compared to the first six months of the year. The report also revealed that over-55s withdrew 46p of property wealth for every £1 of flexible pension payments in H2 2020, in line with 2019. This demonstrates how the wealth in property can play a part in retirement planning, but opting for equity release should not be a decision taken lightly, such as the impact it has on passing inheritance to family members.
David Burrowes, Chair of the Equity Release Council said:
“After the unprecedented upheaval of early 2020, the equity release market showed signs of recovery as households and businesses remained resilient against a challenging backdrop. Property wealth ranks second only to pensions in terms of its importance to household finances across the country. The transformation of later life mortgage products in recent years has given people more opportunities to access property wealth at affordable rates.”
“Accessing property wealth will play a vital role in retirement planning, both now and in the years to come. For today’s retirees, it can make the difference between making ends meet or enjoying a more comfortable lifestyle by boosting their pension income, improving or adapting their homes life and paying for domestic care support. For younger generations, it can open up the possibility of receiving a ‘living inheritance’ to support their own financial goals, such as getting on the property ladder.”
Considering Equity Release? It is very important to seek expert advice to suit your personal circumstances and financial wellbeing. Our equity release professionals then will trawl through the small print of a wide range of providers for you to recommend the best product to suit your requirements. If you would like to find out more, we offer an initial appointment at no cost or obligation to explore the options. We can see clients in their home or in our offices while adhering to COVID 19 safety measures. We can also arrange a telephone call or video call such as Zoom or Skype, although all equity release cases should be face to face where ever possible. Contact us here >
If you’d like to read more about equity release please visit our blog here > https://www.mortgagebrokertorquay.co.uk/equity-release-blog/
Equity Release will reduce the value of your estate and can affect your eligibility for means tested benefits.
It is important to take professional advice before making any decision relating to your personal finances. If you have any queries, please contact the team at Howard Mortgages on 01803 554455 or contact us here.