How is equity release used to fund day-to-day expenses?

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How is equity release used to fund day-to-day expenses?

Lifetime mortgages now cover more than just Caribbean cruises.

According to Sarah Davidson, they often just help people get by.

Mortgage rates have never been lower, with homeowners able to remortgage on a two-year fixed rate from TSB for just 0.84 percent. Rates in the equity release market are also at an all-time low.

More2Life and Pure Retirement both have a 2.53% rate.

Compare the best lifetime mortgage deals available right now, and take note of the terminology used.

The “flexi choice super lite,” “lifestyle flexible enhanced,” and “lifestyle select gold flexi” are the three options available.

On the one hand, it sounds like marketing jargon, but on the other, it demonstrates how the equity release market is evolving.

The key to success is now to be adaptable.

The number of equity release options is at an all-time high, according to Moneyfacts.

Today, there are 698 different lifetime mortgages available, up from only 88 in August 2016.

After several decades of hovering around the £1 billion-per-year mark, the equity release market has exploded in the last five to ten years.

Equity Release Council (ERC) data shows that over-55 homeowners accessed £1.17 billion in property wealth in just three months – the second quarter of this year.

According to More2Life, the amount of equity released each year will increase to £6.4 billion in the next decade.

“Demand for product development has grown as more plans come to market and equity release becomes more mainstream,” says Andrew Morris, senior equity release adviser at Age Partnership.

Clients can now choose how they access the money they release and can choose to make repayments to control the build-up of interest, in addition to fixed lifetime rates below 3%.”

According to the ERC figures, drawdown lifetime mortgages are the most popular new plan, though more customers took out lump sums in June before the £500,000 stamp duty holiday ended.

Both of these examples show how money management in later life has evolved significantly since the 2000s.

Before they die, the older generation gives money to the younger generation, possibly to reduce inheritance tax liabilities, but

News summary from Infosurhoy in the United Kingdom.

How is equity release used to fund day-to-day living expenses?

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How equity release is being used to fund day-to-day living

iMoney has produced a complete guide to equity release in association with Age Partnership. To request your free copy, call 0808 239 1913 or visit inews.co.uk/release

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