You would like to move home but it is out of your budget or you have an existing mortgage which you would like to pay off, rather than borrowing more and having larger monthly payments to commit to at this time, using equity release for purchasing allows you to clear your outstanding mortgage whilst also obtaining additional funds with which to purchase your potential new home.
It seems that you are not the only person considering this, buying a new or second home is the fifth most common reason according to Equity release Supermarket of why people release equity on their home.
According to analysis taken over the last 6 months, repaying the mortgage is the number one reason that over 55’s have released equity. 17.9% of borrowers have been raising money to for a renovation project with home improvements being the second highest reason. The consolidation of debts is the 3rd most common reason followed by supplementing income.
In the last four months alone, gifting money released through an equity release scheme has increased by 2% – this is becoming an increasingly popular trend. In a way to help younger members of the family get onto the property ladder monetary gifts from equity release are sometimes used by the over 55’s.
If you are interested in considering this option – then there are many Equity release calculators available online to give you an idea of the maximum amount you could spend on your new property purchase.
David Phillip commented “inheritance tax can significantly reduce the amount of wealth that you may be able to pass on to family members, equity release can be an appealing alternative strategy that people are looking to turn to”
If you are considering going down the road of equity release and would like a free market appraisal on your home call David Phillip FRICS on 01134 676 400.
A: 86, Leeds Road, Bramhope, Leeds, LS16 9AN w: davidphillip.co.uk.
David Phillip Estate Agents covering Bramhope, Adel, Cookridge and Pool-in-Wharfedale.