As a Guildford equity release mortgage broker, we’ve taken a keen interest in the rising – if not soaring – popularity in equity release mortgages. But what’s driving the boom? Or, more specifically, why exactly are people choosing this form of home loan?
As already covered in a previous equity release advice article, the number of people taking out equity release mortgages is on the up. So, let’s look a little closer at what’s shaping this trend.
Statistically speaking
Research conducted by one UK lender, Standard Life Home Finance, surveyed 512 people – 418 of whom took out an equity release mortgage and 94 who, after their initial equity release enquiries, declined to proceed.
The reasons for taking out an equity release mortgage were as follows:
1. Wanting more from life as they got older (32%)
2. Financial planning (28%)
3. Bolstering pensions and savings (17%)
4. Supporting friends and family (11%)
5. Life event such as divorce, redundancy or illness (8%)
Sound familiar?
If you can relate to one or more of these categories, then it’s no surprise – they’re incredibly universal, touch on every facet of life and are likely to be topics of consideration by those aged 55 and over, which also happens to be the typical age for equity release.
There’s nothing wrong with wanting to live a rich and fulfilling life post retirement – other than the fact that it’s likely to require funding. Equally, if it looks like your pension pot isn’t going to play as large a role as you’d hoped for when it comes to supporting that rich and fulfilling lifestyle, then equity release is a good option. We’ve all heard of family members gifting their children and grandchildren much needed deposits in order to get on the property ladder, so no surprises there. And, let’s face it, divorce, redundancy and illness are, sadly, a fact of life.
Big money without the big change
Our perspective on equity release mortgages is that it allows those who are taking out an equity release loan to release substantial amounts of capital from their property – without even leaving their property. No major lifestyle changes, no downsizing, and definitely no compromising.
It’s really not hard to see, therefore, why equity release is big right now. And the sector’s showing no signs of slowing down, either.
If you can relate to one or more of the responses offered in the recent research and are thinking about equity release as a way in which to free up your property wealth, then Guildford equity release brokers on 01483 238280 or e-mail info@complete-mortgages.co.uk.
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