House prices and Lifetime Mortgages
Alan Rait CeMap Cert CII (MP) Cert CII (ER), MLIBF The London Institute of Banking and Finance
I am an Equity Release and Later Life Lending Specialist working with Yorkshire Equity Release. I help the over 50s use accumulated property wealth to enhance their lifestyle.
I’ve just read an article in the Financial Reporter saying that house prices increased by 6% during 2020. According to the Halifax, this makes the national average house price ￡253,374.
So what does this mean in terms of someone considering a Lifetime Mortgage to raise capital? Historically home improvements and holidays were popular, these days repaying existing conventional mortgages, debt consolidation and gifting to help the family are increasingly important.
Putting some numbers around this, and taking the value of ￡253,374, a 60-year-old could raise a maximum of about ￡88,000, a 65-year-old ￡101,000 and a 70-year-old ￡111,000. Or, they could take a lower amount to meet an immediate need and leave the residue in a pre-approved drawdown facility. Remember, no affordability tests and no requirement to make payments unless you want to.
Please look at my web site:
https://www.isequityreleasesafe.co.uk
There you will find lots of information on how Lifetime Mortgages work.
If you know anyone who’s considering a Lifetime Mortgage, who are over the age of 55 and a house owner, please contact me. I’ll take it from there and pay a generous introduction fee on completion!
07747 056 788