With so many financial challenges at this point in time, it makes sense that many people are looking for greater flexibility in the housing market. Therefore, it shouldn’t be a surprise to learn that lifetime mortgages are rising in popularity, and that there are genuine benefits from this solution.
The greater flexibility and the ability for homeowners to stay in their house for longer is a great comfort, and something worth considering.
At Williams of Petersfield, we are on hand to assist you with all manner of property market situations, and this issue is one which might be ideal for a growing number of people. Of course, if you are looking to sell your home, we can assist you with that too.
There are many prospective buyers in and around Petersfield, and we can assist you connect with them.
Lifetime mortgages have value to some homeowners.
In a recent report, Quilter highlighted that over 5 thousand lifetime mortgages were sold in March this year – an increase of 29% against the same month last year. The data collection was done by Freedom Of Information requests to UK financial advisers and wealth managers who sell or offer products across all loan-to values bands (from small loans up towards large ones).
The data shows that the average number of lifetime mortgages are 31% higher than 2020 and 21 percent more popular with an LTV band at 10-20%.
Karen Noye, mortgage expert at Quilter, said: “These figures show that equity release is soaring in popularity. While there is a place in the market for these types of products it’s essential that people use them for the right reasons. The cost-of-living crisis is biting, and it is worrying to think that people are ripping equity out of their homes just to pay their monthly bills. One of the benefits of equity release is that if you don’t want to leave your home then this product can allow you to release capital but still live in your property.”
Karen concluded by saying; “However, lifetime mortgages do carry a significant risk that you may end up owing far more than you borrowed when the home comes to being sold. This is because this type of mortgage charges compound interest and if you don’t keep up with regular payments then the entire sum will compound. Therefore, you should be cautious when working out whether this product is right and make sure you seek professional advice to decide if it’s the right choice.”
If you are looking for guidance on this style of mortgage, or any potential move in the housing market, we are more than happy to assist you.
Contact Williams of Petersfield for all your 2022 housing market needs
At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.