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Equity Release

22 Mar 2019

Equity Release Deals Hits an All Time High

The number of equity release deals available in the UK has skyrocketed in the past 5 years, with over 200 options for consumers to choose from, compared to just 40 in 2014. According to The Equity Release Council, older homeowners released almost £4 billion worth of equity last year. With £1.08 billion of that figure being unlocked during the final 3 months of the year. That works out to approximately £136 of housing wealth released per second between October and December.

This year, there is an even greater potential for this market to grow as it continues to meet the increasing demands of customers and create positive outcomes for older borrowers that are approaching their retirement age. Product innovation and greater flexibility promise to be the driver for this market growth.

What is Equity Release?

Equity is basically the value of your home, minus any outstanding mortgage deal or other debt that is secured against it. If you have lived in your home for a long time, you will have seen house prices in your local community increase steadily over the past few years, so the amount of equity you now have in your property could be quite a substantial amount of money. Equity release means obtaining some of this money out of your property, without having to sell the property and move out.

What Are The Reasons for Choosing This Type of Deal?

Many homeowners find that they are asset rich but cash poor when they reach retirement. But, don't want the inconvenience of moving home to free up their financial assets. An equity release deal will let you stay in your home while accessing the cash that you have built up in it. But what are the other reasons for choosing this type of deal? Keep on reading to find out!

You Want to Make Some Home Improvements

Equity release is a great way to access funds for some much-needed improvements in your home. Spending cash in this way is a particularly good idea as it could add further value to your property.

You Would Like to Supplement Your Pension Income

Equity release can provide those in retirement with a much-needed cash injection if their pension doesn't provide them with the finances to live comfortably.

Financially Support Your Family

If you would like to help your family pay bills, send them on the holiday of a lifetime or pay for your grand children's school fees or perhaps a deposit for their first home, then equity release can be a brilliant way to access the funds to do so.

Our Top Tips for Find the Best Equity Release Deal

If you are looking into equity release deals and unsure of the different things to look out for, here   

Regularly Read Newspapers

Newspapers like The Guardian and The Times have resourceful sections on finance and regularly report on equity release. Their reports offer some really handy insights into what is currently happening and what is likely to happen in the near future.

Pay Particular Attention to Mortgage Interest Rates

One thing to be aware of is that interest rates are extremely volatile and can change in the blink of an eye. This is why it is crucial to pay attention to them. For example, if several mortgage lenders enter the marketplace at once, then this new competition can cause interest rates to dip.

Always Look for Transparency

During the past couple of years, the government have made a lot of effort to regulate the equity release market due to vulnerable consumers being exploited. As a result, financial advisors who deal with equity release must be properly trained in this field. If you are looking for an equity release deal, then always looked for a fully trusted and transparent service to help you.

At Mortgages Online, we can help find you the best mortgage deals on the property market. To see why online mortgage brokers like us are the future of securing mortgages, then please visit our Application page to see how much you could save.



Laura Waller

Laura Waller has been working in the mortgages industry since 2013, joining an independent brokerage in Essex. Laura has CeMAP 2 & 3 – Certificates in Mortgages Advice and Practice. Since then Laura oversees marketing for Mortgages Online, using her experience and expertise to write articles and blogs about mortgages and related topics.

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