High mortgages may mean more equity released

It’s no secret that higher interest rates have caused mortgage repayments to increase significantly. This year, UK mortgage holders have repaid over £21bn of mortgage debt each quarter – up £4bn when compared to before the pandemic*.

Many favour equity release

These higher payments mean homeowners are more likely to turn to equity release in later life – especially if they also have a depleted pension pot. Lifetime mortgages are arguably more appealing than they once were. Last year, the average lifetime mortgage rate was only 1.5% more than an average fixed rate residential mortgage*. This gap was wider in 2013, at nearly 3%.

Consider your options

Despite the predicted increase in popularity, it is important to consider the benefits and potential drawbacks of equity release. While it offers tax-free cash, it will diminish the value of your estate. It seems pre-existing lifetime mortgage holders are aware of this – the average customer borrowed smaller amounts in the first half of this year¹.

Get in touch for advice.

Your home may be repossessed if you do not keep up repayments on your mortgage.

A lifetime mortgage is a long term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.

*Equity Release Council, 2023

18 January, 2024

More news

15 July, 2024

Before the election, property experts Rightmove carried out a survey to ascertain what this new gove

Speed up housebuilding One of the top recommendations was making improvements to the housebuilding process1. Buyer demand has increased by 15% since 2019, but the number of available homes has not inc

12 July, 2024

Recent research has found that 52% of UK working parents do not have a financial protection policy i

Who is not insured? Interestingly, nearly two thirds (65%) of those without protection are in part-time work, while over half (56%) are self-employed and 39% are on zero-hours employment contracts. H

8 July, 2024

Research has revealed the least and most expensive cities to be a first-time buyer (FTB) in the UK.

Aberdeen came out on top as the cheapest, as a typical home costs £102,6011 (assuming that an FTB property has two bedrooms or fewer). The average monthly mortgage payment is £406 if the borrower ha