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Equity Release with a Lifetime mortgage

Mortgage broker Bishops Stortford

Enable’s IFAs know that equity release is a useful financial tool. This has been reflected in recent figures from the Equity Release Council. Equity release lending held steady in 2020, helped by pent-up demand and low rates.

According to their full-year figures equity release annual lending to new and existing customers totalled £3.89bn over the year, down from £3.92bn in 2019 and £3.94bn in 2018. 40,337 new plans were agreed in total compared with 44,870 in 2019. The final three months of 2020 saw 11,566 new plans agreed, making Q4 the busiest quarter of the year in line with normal seasonal trends despite being the quietest year-end since 2017.

The chairman of the Equity Release Council, David Burrowes commented: “These figures offer encouraging signs of market resilience after a year that presented huge challenges to household finances and business operations. “Over the last decade, releasing equity to boost your finances in later life has grown from a niche pursuit to a competitive market that has stabilised at £3.9bn of lending activity for the last three years, despite significant headwinds driven by Brexit uncertainty and the Covid-19 pandemic.”

 “In the right circumstances, access to fixed lifetime products at lower rates than the average 10-year mortgage is a big factor in the appeal of modern-day equity release, as is the flexibility to pay interest or repay capital for many products to keep total costs in check. Ten years of transformation have made equity release an important financial planning tool that is increasingly valued by our ageing population.”

Many lifetime mortgage scan usually is accessed from the age of 55 onwards and can be a way of supplementing your retirement income using the value tied up in your home. Your equity release lender will decide how much you can borrow depending on your age and the property’s value. Enable’s experienced IFAs can help you look at your equity release options.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


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