You are here: Home - Mortgages - Remortgage - News -

A fifth use equity release to pay off mortgage

0
Written by: Lana Clements
11/07/2018
More homeowners are using equity release to pay off mortgages, typically interest-only deals, analysis has revealed.

Equity release plan sales grew by 29% in the first six months of 2018, compared to the same period in 2017, according to Key Retirement data.

And the value of property wealth released to the end of June increased by 37% to £1.71bn, from £1.24bn in the previous year.

More than one in five use age partnership equity release to pay off interest-only mortgage debts, driving an increase in the typical amount released to almost £78,000, from £70,000 a year earlier.

An increased number of people are also using cash from their home to gift to family members, the research showed.

Overall retired homeowners released an average £9.5m of property wealth from their homes every day in the first six months of the year as the market continues to boom, according to Key Retirement’s report.

The most popular use of the money released in the six months was to fund home and garden improvements with 63% of retired homeowners spending some of the money on their houses.

Dean Mirfin, chief product officer at Key Retirement, said: “Customer demand is driving the expansion in the market to new record highs enabling more retired homeowners to transform their finances.

“More money was released in the first six months of 2018 than in the whole of 2015 as records continue to be broken across the market with expert independent advisers playing a vital role.

“Property wealth is not just helping to transform an individual’s retirement planning but is also helping their families with their financial needs.

“The growth in gifting underlines how much can be achieved when the average amounts being released are as much as £78,000.

“The Bank of Mum and Dad, or Gran and Grandad are changing lives, and not just their own.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week