What is an Equity Release mortgage?
If you are aged 55 or above, Equity Release offers a fantastic opportunity to unlock the value of your home without the need to sell or relocate. This means you can access the funds tied up in your property while enjoying the comfort of staying right where you are. And the best part? All the money you receive through equity release is completely tax-free.
This presents an opportunity for you to leverage it positively to enhance your quality of life. You have the option to receive it as a one-time payment or as a consistent flow of smaller instalments. An equity release loan remains in effect until the property is sold, which occurs either upon your passing or if you transition to long-term care.
This presents an opportunity for you to leverage it positively to enhance your quality of life. You have the option to receive it as a one-time payment or as a consistent flow of smaller instalments. An equity release loan remains in effect until the property is sold, which occurs either upon your passing or if you transition to long-term care.
How popular is Equity Release?
The prevalence of equity release is noteworthy. For 25 years, the Equity Release Council has been at the forefront of establishing industry standards, diligently gathering statistics and lending data that highlight the growth of this sector.
As of late October 2019, the ERC reported a remarkable 8% increase in the market compared to the previous quarter. The total funding reached nearly £1 billion, specifically £988 million, during the period from July to September, marking a significant rise of £77 million from the prior quarter.
Equity release options are available for homeowners aged 55 and older. A combination of favourable factors has contributed to the increasing activity and popularity of this market in recent times.
As of late October 2019, the ERC reported a remarkable 8% increase in the market compared to the previous quarter. The total funding reached nearly £1 billion, specifically £988 million, during the period from July to September, marking a significant rise of £77 million from the prior quarter.
Equity release options are available for homeowners aged 55 and older. A combination of favourable factors has contributed to the increasing activity and popularity of this market in recent times.
- Age increase: The increasing number of older individuals means that more people are eligible to access equity from their homes. As life expectancy rises, the prospect of utilising personal equity to help manage escalating living expenses becomes increasingly attractive.
- Property increase: Increasing property prices are generating greater equity, particularly for those whose mortgages are nearing completion. This trend allows homeowners to benefit from their investments as they approach the end of their loan terms.
- First-time buyer challenges: The difficulty of entering the housing market is compounded by soaring property prices, which makes it challenging for young buyers. Consequently, many are turning to their older relatives for assistance with down payments, highlighting the intergenerational support that is becoming essential in today’s economy.
