Archive for the ‘house prices’ tag
One of the most talked about and potentially viable alternatives to equity release is to take a bold step and downsize to a smaller property. The Office of Fair Trading recently covered downsizing as an alternative to a selling a house and renting it back. The OFT stated that:
‘Relocation may also be costly and sale on the open market may take a considerable period of time, particularly in the current climate.’
For some, house prices are back on the rise and certain kinds of house are particularly rising but this is not to say it will make the sale any quicker or the move any easier.
If you feel particularly vulnerable to the current market situation then releasing equity may well be a viable alternative to moving house for some.
The leading equity release industry body, SHIP, have seen an increase in new customers looking to release equity in their property compared to this Quarter last year. Some attribute this to the recent rising house prices along with the shortfall that some see in their retirement allocations.
The fact that drawdown mortgages are now reported to take up 51% of the market suggests equity release is being used more as a scheduled supplement rather than for lump sum purchases.
Perhaps the increase is down to more government backing in the equity release industry after Baroness Hollis’ welcome intervention at the House of Lords:
More recognition from the Government about equity release’s important role to play may see an even bigger increase for the next quarter.