Equity Release News Roundup – November 2009
It has been another busy month in the equity release market with further house price rises, Government changes to benefits allocations and more emphasis placed on future planning.
November started on a positive note for equity release customers with the announcement that house prices increased for the sixth consecutive month, taking them past the levels of the previous year. The Nationwide estimated the average price of a house in the UK at £162,038, meaning homeowners could be entitled to more from their equity release plan.
At the start of November the Government announced changes to benefits which reduced the impact that an equity release plan had on entitlement. One of the key changes saw the threshold for homeowner’s capital rise from £6,000 to £10,000, making an equity release plan less likely to affect benefits.
These positive changes to the market are a timely boost for UK homeowners, especially after Price Waterhouse Coopers predicted a rise in bad credit card debt in 2010.
As such, future planning for retirement has been a key focus in November after it emerged that over a quarter of people in the UK are likely to be solely dependent on the state pension when they retire. As a result, educating people about the benefits of equity release and the criteria required, prompted us at Age Partnership to provide you with some important information.
Safe Home Income Plans (SHIP) also spoke positively about the benefits that an equity release scheme can have for retiring homeowners.
Although, according to research undertaken in November, equity release schemes are becoming more popular amongst parents and amongst a younger demographic – a fifth of 25-34 year olds now expect to use equity release!
Finally, as Christmas fast approaches, at Age Partnership we felt in the mood for giving with our £1,000 give-away for anyone receiving a no-obligation equity release recommendation!
Don’t forget to check out our monthly equity release video too with up-to-date news and exclusive deals.
By consolidating your existing unsecured debts, you may extend the term and overall cost of these debts.
For no-obligation advice on whether equity release could help you and information on the best plans please call our 24 hour helpline and speak to one of our advisors:
Or use the comments box below to ask a question.
Equity Release may involve a Lifetime Mortgage or Home Reversion Plan. To understand the features and risks ask for a personalised illustration.
Age Partnership provides initial advice at no cost and without obligation. Only if you choose to proceed and your equity release case completes would a typical fee of 1.5% of the amount released or £795 be payable.
Important things to consider about equity release:
- Equity release could affect your current or future entitlement to means-tested benefits
- Releasing equity to spend in your lifetime can reduce the amount that is left in your estate when you pass away
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