UK mortgage holders consider equity release to support care needs in later life

According to recent findings by LV= where 4,000 UK adults were surveyed, mortgage holders said that were likely to consider equity release to free up some money to take care of expenditures in later life.

The quarterly survey found that 11% would consider equity release to release funds to support their health or care needs when they are older. Whilst 8% of those surveyed said they would use the money as a way to top up their pension, and 7% said they would use it to financially help family or friends. Another 8% said they would use the money on holidays and lifestyle improvements in their later years.

One in three UK mortgage holders reported that they would consider equity release as an alternative to selling or downsizing.

Interestingly, one in five people said they did not plan on buying their own home, for those who rent this figure was 50%, and a third of people who lived alone said they hadn’t planned on buying. 

Equity release is a way of releasing tax-free funds from your home to use for whatever reason you choose be it carrying out home improvements, helping to support family, or to book a fancy holiday. It is designed to allow you to stay living in your home until you either pass away or are unable to carry on living there.

As with any type of loan, there are risks and responsibilities involved all of which should be considered carefully. At Mortgage Required we understand this and will help you decide whether it is the best option for you, and will take the process at your pace. Give our friendly team a call: 01628 507477 or visit: https://mortgagerequired.com/later-life-lending for more information. 

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Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.

It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.

There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish. 

The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.

Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months. 

According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.