Homeowners aged 55 or over own £1.8 trillion of equity in their homes, yet many struggle to get by on greatly reduced incomes once they reach retirement.
The pipeline of maturing interest-only customers is rising and forecast to keep growing. But their situations can prove a tricky challenge to solve.
The data, from Key Retirement’s first quarter Equity Release Market Monitor, revealed more than one in five (22 per cent) customers used property wealth to clear mortgage debt in the first three months of the year.
The equity release sector in the UK saw record year on year growth in 2016 and in the first quarter of 2017 it has continued to break new ground, the latest data shows.
The buoyant equity release sector saw record annual growth in new customers and total lending in the first quarter of 2017, according to the Equity Release Council which accounts for 95 per cent of all equity release lending in the UK.
New research has revealed that more than half of all people with a mortgage will still have to pay over £10,000 when they retire.
According to more 2 life, 54% of mortgage borrowers will have more than £10,000 left to pay at retirement.
Older homeowners with interest-only mortgages they cannot pay off at the end of the term are being offered more ways to stay in their homes.
By releasing equity from a property, it is possible to clear the debt, meaning a homeowner can live there until they die or go into long-term care.
A record breaking year for equity release in the UK in 2016 saw lifetime mortgages become the fastest growing product in terms of customer numbers, according to the data.
The volume of lifetime mortgage customers grew by 22% in 2016 with a total of 27,534 new plans agreed, the figures from the spring 2017 equity release market report from the Equity Release Council shows.
Equity release has become the fastest growing segment of the mortgage market in terms of customer numbers.
According to new figures from the Equity Release Council, the volume of lifetime mortgage customers grew by 22% in 2016, with a total of 27,534 new plans agreed.
Hello, my name is Zoe Taylor and I am a Senior Technical Paralegal at Equilaw. I am part of the technical team, which consists of qualified solicitors and highly experienced Senior Paralegals. Here at Equilaw, we have noticed a rise in the number of clients wishing to sell their current property, purchase a new one […]