Will property price rises boost equity release uptake?

Lifetime mortgages and equity release loans may begin to look more favourable as a financial solution as house prices continue to rise.

The latest figures from the Land Registry indicate that house prices increased by 6.7 per cent in the 12 months to July, with the highest rises in London (12.1 per cent).

Compared to June, the rise was only 0.4 per cent, but will undoubtedly reassure many homeowners considering home equity release schemes and similar products of its stability.

However, the news was not so good for homeowners in the north-east of the country, where property prices dropped by 1.4 per cent.

Earlier this month, the Society of Equity Release Advisers suggested that the keenness of many lenders to strengthen their capital bases will result in a surge in equity release.

Borrowers that are close to retirement and struggling with their finances are expected to be among those that will consider equity release.

Ashall Glover Financial Services are equity release specialists

Posted by Patrick Ashall