- Types of Mortgage Explained
- Which Mortgage Type Is Right For Me?
- Mortgage Repayment Guide
- Remortgage Guide
- First Time Buyer Mortgages
- House Price Comparison
- How Much Can I Borrow
- Joint Ownership
Specialist UK Mortgages...
Moneyfacts comments on the SHIP equity release findings
David Knight, analyst at Moneyfacts.co.uk, comments:
“Following the latest figures released by SHIP showing the amount of equity release business has risen 14% in Q2 this year Moneyfacts.co.uk can confirm that the number of equity release products available has also risen since the beginning of the year.
“60 products are now available to choose from, representing a rise of over 25%.
“The importance of equity release to an ageing UK population struggling with inadequate pensions has been heralded for a long time. Have we finally seen the flood gates open?”
How has it escaped from the credit crunch?
“Whilst we are currently experiencing house price falls and conventional mortgage lenders are pulling their products, the equity release sector has a more long term outlook and is seeing demand increase.
“The majority of schemes constitute lifetime mortgages where an amount can be borrowed in the form of a lump sum or regular payment. The interest on this can then be paid back from the income received or allowed to roll up until the borrower dies, moves into full time care or sells the property.
“From the lender’s point of view these products are low risk. There is no risk of default with these mortgages and the lender will be able to recoup what they are owed when the property is sold.
“The threat of negative equity is largely avoided by lenders staggering the amount a customer can release at different ages, typically rising to a maximum of around 50%.
“Retired homeowners, who are the mainstay of the industry, have seen the value of their property shoot up over the years and have accumulated a large amount of equity in their properties, despite recent price falls.
“With rising inflation eating into often fixed retirement income, a further rise in the popularity of these products seems likely
“This is not a move that should be taken lightly so it is essential that anyone looking to release equity from their home seeks advice from a qualified adviser before doing so.”
Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.
Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.
Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.
Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600
We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £349