Whilst traditional mortgage products are currently sailing through choppy waters, the equity release mortgage seems to be staying afloat. But what’s behind this buoyancy?
As regular readers will know, we’ve documented the equity release boom on many occasions now. And, as a Guildford equity release specialist, we’re huge ambassadors for the product. After all, its ability to unlock a homeowner’s property wealth without requiring them to sell their property is a powerful – and empowering – feature.
However, reasons for the current surge in those applying for an equity release mortgage lie in the very thing that’s representing a roadblock (or sea barrier, if we’re keeping with our water analogy) for others: the cost-of-living crisis.
OneFamily, a financial services provider based in the South East of England, has conducted research that suggests as much as a fifth of older homeowners are considering equity release as a way in which to capitalise on property wealth accrued over many years and offset the negative fallout around increasing prices.
Of course, nervousness around spending during a period when the price of everything seems to be on the up doesn’t just impact those over 55 years old. Everyone is feeling the economic burn right now. However, it’s those aged 55 and over that have the choice of using equity release mortgages as a way of locking in certainty in what are otherwise uncertain times.
The same research also suggests that those considering equity release are well aware of this, too, with 26% of respondents saying that they are glad that they have the option of applying for equity release if required.
As a team of equity release advisers in Guildford, we’re aware that whilst equity release isn’t right for everyone, there is a large contingent of the population that could feel the benefits of equity release mortgages right now.
So, if you have mortgage concerns around the cost of living crisis, or would like to explore equity release mortgages, we recommend that you contact us to discuss your options. We may not be able to offer a lifeboat, but we can offer independent equity release mortgage advice.
Please note
An equity release plan may affect you in the longer term. You need to be happy that the arrangement suits you now and in the future, as a lifetime mortgage denies you the opportunity to have any other mortgages or loans secured against your property.
When considering equity release it is also important that you only release funds that you require for a specific purpose, as interest will be charged even though you may not have an immediate requirement for the funds. Differing and flexible products are available now, including those with a phased drawdown. It is therefore important to give careful consideration to the amount that you wish to release, so that you do not release more than you require to meet your needs. After all, the cost of living crisis could be a short term issue whereas an equity release mortgage is a long term commitment.
For award-winning mortgage advice or to speak with one of our equity release advisers, contact the Complete Mortgages team on 01483 238280 or by e-mailing info@complete-mortgages.co.uk.
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