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Equity release more popular than ever

Equity release more popular than ever

 



Video transcript

The third quarter of this year proved to be the most bountiful period for people releasing equity from their properties, with the total representing the largest quarterly amount since equity release funding recording began.

Between July and September, £375.5 million was released by homeowners in the UK, which has helped the annual total pass one billion pounds already. Not only is that a remarkable milestone in itself, but it`s also 95 per cent of the total value from last year and in excess of the annual lending for each year from 2009 to 2012.

The stats from the Equity Release Council (ERC) suggest that the increase in money taken from homes isn`t just down to prices increasing; the third quarter saw 5,565 new customers come on board, an increase both monthly and yearly. It also puts the 2014 total over 15,000 (15,624), suggesting that 20,000 could be attainable by the end of the year.

The average amount borrowed was also on the up during a profitable third quarter of the year, with the total passing £67,000 (£67,467) per person. That`s the greatest amount on record and represents a nine per cent increase on Q2 and an 18 per cent upsurge on the third quarter of last year.

So as you can see, equity release can certainly prove to be a positive experience for those where they have decided it is the way forward, so if you think that it`s something that you could benefit from, you should get in touch with First Choice Finance.

Our qualified advisers will work with you to find an equity release solution for you, from various lenders and alternative products be it a lump sum or drawdown lifetime mortgage option for example. You can ask for a personalised illustration which will be provided without obligation for you to decide whether to go ahead or not when you are ready.

Find out more by calling us for on 0800 298 3000 from you home phone or 0333 003 1505 from your mobile or visiting firstchoicefinance.co.uk. 

Commenting on the ERC figures, the organisation`s chairman, Nigel Waterson, remarked that `the latest lending figures show equity release is proving an invaluable financial planning solution for over 55s approaching retirement as pension savings fail to cover rising costs`.

He adds that `equity release can offer a large and much needed boost to people`s finances, providing comfort and stability throughout retirement`.

Getting that additional cash could prove to be vital for some people after a third of over 50s that Saga spoke to admitted to have thought about selling their home in order to raise funds. Their problems stem from taking out interest only mortgages with endowment policies that fall short of the mark.

These concerns are leaving people to consider dipping into their savings pot or selling other investments in order to make up for the gap. Worryingly, one in ten respondents suggested that they didn`t know how they would fund the gap.

Jeff Bromage from Saga notes that `being saddled with mortgage debt well into your retirement is far from ideal, as it means keeping an eye on the coffers when you should be making the most of life`.

However, he adds that `if you`re over 55 and a homeowner, equity release could be a solution`, explaining that `it gives you access to money tied up in your home, giving you peace of mind and the freedom to enjoy your retirement properly`.

Homeowner Secured Loans
Rates From 7.1% APRC Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property. First Choice are tied to certain loan providers.

Mortgages & Remortgages
4.5% APRC
Representative Example: Borrow £80,000 over 25 years At 4.6% Variable, £461.95 for 300 months.
Total Payable £138,585. Total Cost Of Credit £58,585 (incl £1360 fee).


Unsecured Personal Loans
REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Security is required on immovable property.



Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home

First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014.


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Retirees use equity release to help family