House Price Rises Make Equity Release More Attractive

House prices in the UK are officially up on the previous year, which is welcome news for homeowners considering an equity release scheme.

According to the Halifax, their figures showed that a 1.0% house price rise during December contributed to a 1.1% increase compared against December 2008. This made the average price of a UK house to £169,042.

Making the Most of Equity Release

The continued rise in house prices bucks the trend of the rest of the economy that – although showing signs of recovery – has struggled throughout 2009. Yet it is encouraging news for people considering an equity release scheme as they have the potential to unlock more value from their property.

Equity release has the potential to unlock a tax-free lump sum or regular payments from the value of your home to supplement income in retirement.

In December we spoke about how customers are taking longer to research equity release, with over 40% taking more than six months before making a decision.

Time to Capitalise on Equity Release

Those who have been waiting can now capitalise on this, the sixth consecutive monthly rise. These figures from the Halifax follow a reported 5.9% rise in house value in 2009 from the Nationwide. The figures also indicated that the average house is now worth £14,500 more than in April 2009.

Dan Baines, Sales and Marketing Director at Age Partnership, feels that this news is good news for homeowners, stating:

“Many mature homeowners are already sitting on a wealth of home equity that outweighs other provisions that they have made for their retirement. These latest figures are good news, meaning that more funds could now be available.”

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

Related posts:

1. UK Equity Rises as House Prices Improve Again
2. Equity Release Market Benefits From House Price Rise
3. Homeowners May Still Benefit from Equity Release Schemes Despite House Price Fall
4. New House Price Rise Could Boost Equity Release