Even as a Guildford mortgage broker that’s been around for almost two decades, we still read mortgage market news that surprises us. And a recent article on equity release (or lifetime mortgages, as they’re also known) did exactly that.

As reported in FT Adviser following findings from the Equity Release Council – the industry body for the equity release sector – over three in five homeowners are considering getting a lifetime mortgage in later life.

As a lifetime mortgage broker in Guildford, we’ve managed a growing number of applications over recent years – but almost two thirds (61%) of people is a staggering amount.

So, what’s behind this surge in interest?

Greater opportunities

The Equity Release Council’s survey included 5,000 respondents, which is a significant sample size and one that is certainly reflective of the UK population.

It’s also worth pointing out what whilst the figures were still very high in 2021, when 57% of respondents gave the same answer, a 4% increase is notable.

However, the advantages of releasing equity are hard to overlook. For example, having the ability to stay in your own home AND take a tax-free lump sum of cash is compelling. And, as the cost of living continues to increase, money released from a property be used to improve quality of life – whether that entails a new kitchen or a round-the-world cruise.

Many of our lifetime mortgage clients even use the money to help family members get their foot on the property ladder, which, as a first-time buyer mortgage specialist, is something we’re very familiar with.

What’s the catch?

There isn’t one, really. Equity release is merely a flexible route to staying in your property and accessing cash in a very short timeframe.

However, there are some considerations that need to be made before you commit to applying for equity release.

For example, how much state benefit you receive – if means tested – could be affected if you suddenly receive a large cash lump sum. Equally, by borrowing against your property, you may reduce any inheritance you wish to pass on to family members

And this is where a good lifetime mortgage broker comes in, for they’ll be able to guide you through the pros and cons of equity release and ensure that you make the right decision for you.

As the name lifetime mortgage suggests, they are a long-term commitment so it’s important that you receive impartial mortgage advice before making any big decisions.

To speak with a lifetime mortgage adviser in Guildford, contact Complete Mortgages’ team of Surrey mortgage brokers on 01483 238280 or e-mail info@complete-mortgages.co.uk.