A study by the Equity Release Council of 5,000 UK adults’ financial experiences highlights that 43% of mortgaged homeowners under the age of 40 relied on financial help from family or friends to get onto the property ladder. Just 23% of those aged above 40 relied on a similar level of support to buy their first home. The rise of this delayed homeownership for nearly half of buyers means for those helping family financially, having a mortgage in later life is likely to become more common.
Jim Boyd, CEO of the Equity Release Council, comments:
“The realities of delayed homeownership are prompting people to reassess their attitudes to secured debt in later life. There are clear signs that paying a mortgage in retirement is no longer a taboo: for many people it can make the difference between financial hardship and enjoying a more comfortable lifestyle while also supporting family members. Our findings suggest Later Life Finance products are likely to be even more important for future generations of retired homeowners than they are today”
Equity Release such as a Lifetime mortgage, allows individuals aged 55 and older to release money from the property they live in without having to make any monthly repayments. With a number of factors including the rising cost of living having an impact on household spend, equity release could provide homeowners with the opportunity to supplement their retirement income and help family buy their first homes.
As there are no restrictions on how the money is spent, Later Life Finance can be used in other ways such as home improvements, holidays, supporting your family, to more pressing needs, such as income supplement or paying for long term care.
Later Life Finance products are regulated by the Financial Conduct Authority (FCA) and could offer a safe way to unlock capital from your home.
Results from the recent study by the Equity Release Council show that one in three mortgaged homeowners (33%) feel financial services providers are getting better at offering mortgages to people in retirement.
The study also highlights the need for clear and straightforward information in this area. Findings quote a high 36% of those surveyed say they are confused about what mortgages are available to people in later life.
Henry Knight, Managing Director of Springtide Capital commented:
“For more people to feel confident and informed enough to consider a Later Life Finance solution, such as a Lifetime mortgage, it is important that we remove any associated misconceptions and confusion that the consumer may have. It is a complicated area that can be daunting, especially for homeowners who have historically worked toward having no debt in later life as their main objective.
An experienced advisor can review your options, consider all of your options and discuss the advantages and disadvantages fully before you decide the right choice for you.”
At Springtide Capital we offer a personal service and are here to help. With many features available within Later Life Finance products, speak to one of our friendly and experienced advisers today to discover if it is the right option for you.
Call Springtide Capital on 020 8154 7280
Sources:
https://www.equityreleasecouncil.com/what-is-equity-release/