Wednesday 22 October 2014

Rising Property Values Prompt Equity Release Loans

Borrowing drawing on the equity tied up in people’s property has hit its highest quarterly level since records began in 2002, figures show.

The Equity Release Council trade body has stated that equity release lending totalled £375.5m in the third quarter of the year. 

More than 5,500 people aged over 55 released equity from their homes over the same three months, it added. 

However, the Money Advice Service suggests this form of borrowing can be “expensive and inflexible”.

The average value of equity release also reached its highest level since 2002 in the third quarter of the year, with homeowners typically “releasing” £67,467. 

Nigel Waterson, chairman of the Equity Release Council, claimed that for many people aged over 55, pension savings were failing to cover rising costs. 

Source: http://www.bbc.co.uk

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