It’s more good news for homeowners as latest property price reports reveal a further increase of 3.5% over the last 12 months – and it’s particularly welcome news for those seeking some extra funds in retirement to boost their finances.
At £194,258, the average home now costs almost £13,000 more than a year ago – and over £113,000 more than in 2000*. Despite tougher mortgage rules coming into place in 2014, more homeowners are deciding to move and the number of first-time buyers is increasing. With buyers encountering a lack of property to choose from, prices have been pushed up.
Fortunately homeowners aged 55 and over don’t need to sell their much-loved family home to take advantage of the boom in house prices. As prices continue to grow homeowners could unlock a larger amount of tax-free cash than they may have been able to previously, as well as potentially gaining access to better loan-to-value rates.
The increase in house prices also means thousands of people already enjoying a more wealthy retirement with an existing equity release plan could unlock even more money from their home, or benefit from a new lower rate, now that their property is likely to be worth more.
As thousands more people are predicted to cash in on their home’s bigger value as a result of the house price increases, Geoff Charles, CEO of Bower said: “It’s great news for homeowners, but we do urge anyone considering equity release to seek expert, independent advice.”
“Our award-winning advisers are here to assist all customers, whether they’re new to the idea or perhaps already have a plan in place that they’d like to have reviewed; and can of course take care of the whole process from start to finish.”
As well as being able to search the entire market to find the best plans for you, an independent specialist adviser will explain how a plan works and go through the drawbacks and benefits of each type of plan; including for example how equity release will reduce the value of your estate and may affect your entitlement to some means-tested benefits.
To request your FREE guide to equity release or to arrange your free, no-obligation consultation with a local independent specialist in equity release, call free on 0800 411 8668 today.
*Nationwide House Price Index
This is an equity release plan. To understand the features and risks, please ask for a personalised illustration.