More than two thirds of Brits who headed off to Europe for a life in the sun are returning to the UK.
UK foreign exchange experts Moneycorp have recently reported that 70% of Brits who moved to mainland Europe are now considering coming home because as the value of the Pound has plunged, so has their ability to afford mortgage payments and general living costs. Some 74% of those ex-pats living in Spain alone intend to return to the UK, according to the survey.
Sterling Plunged in Value
Sterling has dropped around 30% in value against the Euro over the past three years and, according to Vince Robinson of UK based removals company removalstofrance.com, it has been mainly retired couples making the move back because they have seen their pensions plummet by more than 30% as a result of the exchange rate drop. Not only this, those living on their life savings face the nightmare of plummeting interest rates.
As well as financial concerns, older ex-pats face the worry of an increased need for medical care, which in some cases doesn’t match the quality provided in the UK: another reason to move back home.
Funding a move back to the UK
But what lies ahead for those retirees who have no choice but to make the move home and who sold their UK property to fund their move to the sun? How will they meet the purchase price of a new property in the UK if it is higher in value than the property they are selling? Or gather the cash they need to fund the move and pay for things like removal costs and legal fees?
Geoff Charles, Managing Director of Equity Release Specialists Bower suggests releasing cash from the new property in the UK as a possible consideration. He says ‘Retired ex-pats moving back to the UK can use equity release to fund the purchase of their new property and/or moving costs, and they will have a lifetime guarantee of residence.’
The lifetime assurance that the homeowner will never have to move out of the property comes courtesy of the SHIP (Safe Home Income Plans) guarantee.
Geoff Charles summarises by saying, ‘We help lots of retirees fund a home move or upgrade to a more expensive property — whether they are returning from another country or simply moving within the UK – by arranging for them to receive a lump sum to be used as a deposit and/or for moving costs which has no monthly repayments and is therefore not based on income or credit rating.’
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
Bower is an FCA regulated independent financial advice company that offers specialist advice on equity release throughout the south of England. For more information e-mail [email protected] or call [tel]. Bower offers a no obligation initial consultation to homeowners considering Equity Release.