Data released earlier this month underlines a continued growth in the property equity industry in 2021, with lenders evolving their products to match increasing demand, as well as competition in the market place. This, in turn, is providing far better options for consumers. We are finding that there is also a growing acceptance of the central role that property wealth has to play in helping people navigate their way through later life.
Property wealth ranks second only to pensions in terms of its importance to household finances across the country, therefore, the transformation of later life mortgage products in recent years has given more opportunities to those wishing to access property wealth at affordable rates. The average lifetime mortgage product rate is now 3.95%, with the best available deals around 3%, with some even lower.
Here at The Financial Planning Group, we have found that equity release is increasingly being used to improve financial flexibility, with around a third of these equity linked products being used to refinance a mortgage, and almost a quarter gifting some, or all, of the money they released to help a family member… typically a younger relative trying to get on to the property ladder.
Recent analysis also shows that retired households with the lowest incomes have among the highest rates of home ownership, making equity release a clear top-up retirement income stream to ensure they can achieve a better later life.
Taking independent financial advice is key to ensuring which product on the market is the perfect fit for your exact circumstances, and with over 25 years experience serving the people of Teddington, Twickenham and Richmond, The Financial Planning Group would be delighted to help provide the information you need.
You should think carefully before securing a loan against your home. This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
Please call Steve Padgham on 020 8614 4782 to arrange a meeting at our office in central Teddington or e-mail firstname.lastname@example.org