As a Guildford equity release broker, there’s no shortage of equity release advice articles on our news pages. If you’re looking for guidance on lifetime mortgages, wondering whether or not equity release mortgages reduce inheritance tax or are simply interested in equity release statistics, you’ll inevitably find it all in our growing archive.
One statistic that isn’t on there, though (not until now, that is), is just how much equity is being released by those aged 50 years old and above. According to yourmoney.com a staggering £4.4bn in property wealth was released in 2021, which works out as an average of £12m every day. And that’s in the midst of a pandemic!
Those applying for equity release mortgages tend to be 55 years old and above, and it’s those within this group that each released an average of £104,792 in 2021, which represented a 23% increase on the previous year and was 37% higher than the pre-pandemic levels of 2019*.
So, what’s behind this growing popularity and what are the benefits of equity release mortgages? First of all, it’s a tax-free way in which to release your property wealth, which is a clear advantage. After that, you could get an equity release mortgage to clear an existing mortgage or debt and gain access to money for retirement, fund home improvements, create a supplementary source of income, or give the cash released as a gift to loved ones.
If that’s of interest, perhaps the next question is how much does equity release cost? Equity release mortgage rates vary but they tend to be slightly higher than normal mortgage rates. However, interest rates have recently gone up and may continue to do so over the next 12 months, which will undoubtedly push the cost of equity release mortgages up, too.
If you’ve decided to take out an equity release mortgage, or are considering your equity release options, then it’s worth giving our team of Guildford equity release advisers a call. They’ll be able to guide your through the entire process, outline the pros and cons of equity release, and help you decide if equity release is right for you.
Not interested in equity release? We’re also buy to let mortgage specialists, commercial mortgage specialists and self-employed mortgage specialists, too. Call the team on 01483 238280 or email us at email@example.com.