New House Price Rise Could Boost Equity Release
Rising house prices could allow homeowners to benefit further from equity release schemes. House prices continue to rise with October’s 2% increase marking the first time that prices have surpassed the levels at the same stage of the previous year.
The Nationwide have reported this increase that has seen the average price of a UK house reach £162,038. This could be beneficial for homeowners considering an equity release plan as they may be entitled to more equity.
Growing Market Signals Growing Confidence in Equity Release
The Nationwide identified that the growth in the market is slowing down but there was still a small increase. This is now the sixth consecutive month that house prices have raised in the month-on-month measurement and this will no doubt support a growing equity release market.
Earlier in October, Key Retirement Solutions reported that equity release plans taken out in the third quarter of the year had increased demonstrating a growing confidence in the market. This upward curve coincides with the strongest growth in the housing market for 19 months.
The increased valuation of most houses has prompted homeowners to take out an equity release plan to supplement their income as they approach or enter retirement.
Equity Release Can Supplement Retirement Income
An equity release scheme has the power to unlock a lump sum or regular payments to complement income in retirement. This is proving especially valuable in a time of recession. Earlier in the week it was expected that the UK would come out of recession but forecasts were premature. This could lead to more people considering equity release.
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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