Right now we have seen a 25% fall in the amount of cash released by homeowners aged 55 and over in 2020 to date, however this is nothing to do with the product, in fact there’s far more choice today than ever before.
On top of that we see some of the lowest interest rates ever, so when you consider the findings of Canada Life, why aren’t more over 55’s unlocking tax free money from the equity held in their homes.
Analysis from Canada Life, based on figures from the latest Halifax quarterly regional house price index, found that the total amount of housing equity available to homeowners aged over 55 now stands at an estimated £591 billion.
I can’t say that I actually know the answer as I’m sure its complex when we consider the circumstances, we have found ourselves in this year. I do believe that much of it is because those who would have used equity release this year are probably waiting, waiting until 2021 before they take the plunge.
One of the great initiatives of the past was the equity release drawdown plan and this is something those who are waiting for 2021 may consider, as it allows them to have a small amount of money now and they can then release further sums in the future, i.e. in 2021 via the drawdown facility, therefore allowing those to initiate equity release now rather than waiting and missing out on the things they would like or need today.
The thing is, speak to someone and find out if this is a solution for you to consider now rather than waiting!
For more information and to arrange a consultation with an Lifetime Mortgage advisor, contact Blue House Equity Release Kent today