Many readers of the Daily Mail will have been alarmed by an article in the City & Finance section on Monday 29th August predicting that property prices, and hence the potential release of equity tied up in their homes, could fall by more than 50%.
The forecast will be a cause of particular anxiety to elderly homeowners who are planning at some time in the future to make use of equity release in order to remortgage their interest only mortgages, or to supplement their pensions in the UK. The maximum amount which can be raised under an equity release plan is determined by your age, health- and the property value at the time an application is made to the Lifetime Mortgage or Home Reversion plan provider.
If the Daily Mail commentator’s opinion turns out to be correct, it is probable that equity release will not release sufficient finance for many people approaching or in retirement, and potentially some of them will be at risk of losing their homes.
If you have concerns about the future outlook for property prices and the consequent impact on the amount which can be raised by equity release, Bower offer a free initial consultation to explain how equity release works and to enable you to plan your equity release transaction in a manner which is most suitable for you.
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Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration in the comfort of your own home with a Financial Advisor from our award winning team. Bower is an FCA regulated independent financial advice company that offers specialist advice on equity release throughout the UK. For more information email [email protected] or call 0800 4118668.