It’s a funny time for the mortgage market right now. It’s also a time in which the benefits of using a mortgage broker have become clearer as lenders change (or even pull) products between 9.00am – 5.00pm on any given day, the result of which means that mortgage brokers are working extra hard – and are under extra pressure – to secure the best mortgage deals in the UK for their clients.
In contrast, the equity release mortgage is currently enjoying a golden period as long-term homeowners who have built property wealth over decades look to turn bricks and mortar into pounds and pence. But what are they spending it on?
As a Guildford mortgage broker that specialises in equity release mortgages, our role typically involves finding and then applying for an equity release mortgage on behalf of our clients. What our clients actually do with the funds they unlock often remains a mystery. So it was really interesting to read Legal & General’s Equity Economy report, which shone a light on exactly how UK homeowners are spending their equity.
Given that equity release funds £1 in every £90 spent by retired people in the UK, one thing’s for sure – it is definitely getting spent. And here’s how:
Holidays and travel
The report revealed how equity release-funded travel rose to 25% – up from 11% in the same period in 2021.
Tackling inflation
With inflation high and rising even higher, around 25% of equity release mortgage holders were using the product to boost their bank balance – up a staggering 19% since last year.
Helping family
At the other end of the equity release mortgage spectrum lies the first-time buyer mortgage, and it’s widely known that getting on the ladder is tough for young people struggling to save a deposit. And it seems that equity release mortgage holders are all too aware of this, as 12% were gifting some of their property wealth to family members.
The question, therefore, is what would you do with yours?
Of course, equity release isn’t quite that simple and there are many questions that need to be answered before taking out an equity release mortgage. Yes, there are many equity release benefits to explore. However, the product isn’t for everyone. And that’s where a good mortgage broker comes in.
Whether you have grand travel plans, are planning to maintain a certain lifestyle in the wake of rising prices or want to help younger members of your family get a foot on the property ladder, we would highly recommend that you arrange a consultation with a mortgage broker before you do anything else.
Are you a UK homeowner aged 55+ looking for equity release advice? Contact our team of Guildford mortgage advisers on 01483 238280 or e–mail info@complete-mortgages.co.uk to arrange an initial equity release consultation today.
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