The reasons for a greater number of older people choosing equity release have been revealed in a new study from the Equity Release Council.
One of the headlines presented by the Equity Release Market Report is that the average interest rate for products has fallen by 0.5 per cent since 2011. While that may not sound much by itself, borrowing rates for overdrafts and credit cards have risen significantly over that period.
Another factor in the uptick in equity release applicants is the rate at which their homes gain in value. On average, customers` homes have gained more equity than other homeowners since 2011, so the incentive to release some of it will be greater.
The Equity Release Market Report also indicates that two-thirds of customers are opting for drawdown options, while the remainder choose a lump sum. For the former, their properties are usually worth more, but the latter typically take out a greater amount.
Increasingly, people are turning to the internet to gain advice about equity release, with more than half (54 per cent) hearing about the topic online. First Choice Finance provides extensive information both on line and directly over the telephone as we believe it is important to potential customers to discuss their scenario with a person directly if they so choose.
If we have a product that works for you then we will provide you with a free personal quotation for you to decide next steps. Find out more about equity release by heading to firstchoicefinance.co.uk or by calling us for a no pressure chat on 0800 298 3000 on your landline, or 0333 003 1505 from a mobile.
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
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.
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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
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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 2014-2018.