Archive for the ‘recession’ tag
Homeowners releasing equity to help with children’s deposits
Recently, with the lending criteria being constricted by most high street banks, many first time buyers find themselves in a position where the deposit required to take out a mortgage is simply out of reach. It looks as though more and more homeowners are helping to share this challenge with their children using equity release as a tool to come up with the hefty deposits.
This may be seen as a welcome hand in a difficult time and goes to show that the recession cannot stifle innovation and determination. Equity release may affect the inheritance one is able to leave but many may agree that causes like this, among the countless other reasons, are well worth it.
Equity release in the recession
Unlike other mortgages, the equity release market looks set to grow during the coming periods in the recession. The performance of the stock market and the FTSE 100 affects some of those of a pension age quite dramatically. With billions wiped off the market during the recent turmoil, the shareholders are left short changed from their investments. Some of the major shareholders are in fact pension funds and other types of mutual funds which some people rely upon for annual dividends and returns. Without these, some may be looking to secure alternative funding for their retirement. Equity release can be one of those alternatives and the market is expected to grow as the economic recession continues.