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13% leap in releasing equity to repay mortgage

The number of homeowners releasing equity from their property in order to repay a mortgage increased 13% in 2010, new research has shown.

Home reversion provider, Bridgewater Equity Release found that 43% of people used equity release schemes to pay off their mortgage in 2010, compared to 30% in 2009.

Home improvements and consolidating other debt rounded out the top three reasons behind using equity release, with their popularity markedly increasing over the last year.

Over 30% of respondents cited home improvements as one of the reasons for releasing equity, up from 17% in 2009. Consolidating other debt was highlighted by 27%, up from 15%.

In addition, travelling was revealed as a key reason for 19% of customers, followed by buying or repairing a car for 12%.

Other uses included combining home improvements and debt consolidation (7%); providing a gift, such as funding a house deposit or wedding (7%); and improving or maintaining a lifestyle (4%).

However, just 1% said they would use the money to fund long-term care.

Peter Welch, head of sales and distribution at Bridgewater Equity Release, said: "Many more individuals in or reaching retirement find themselves with far higher levels of indebtedness than they imagined.

"With the credit crunch and recession biting hard in recent times, the older population has found it increasingly difficult to find remortgage or debt finance, because of the stricter criteria placed on lending into retirement.

"With this the case, individuals are now using the equity they have stored in their properties to become debt-free which not only enables them to plan more freely for the rest of the retirement but provides security of tenure in their home for the rest of their lives."

He added that with the government cuts set to impact many areas of the company, he anticipates that more customers will use equity release to either maintain or improve their lifestyle or to look after their long-term care needs, which may not be funded by the state."

http://www.yourmortgage.co.uk/news/3627339

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IC...using your equity to repay a mortgage....with another mortgage.

It's the last release valve that people have to maintain their lifestyle. Not gonna last much longer.

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13% leap in releasing equity to repay mortgage

The number of homeowners releasing equity from their property in order to repay a mortgage increased 13% in 2010, new research has shown.

Home reversion provider, Bridgewater Equity Release found that 43% of people used equity release schemes to pay off their mortgage in 2010, compared to 30% in 2009.

Home improvements and consolidating other debt rounded out the top three reasons behind using equity release, with their popularity markedly increasing over the last year.

Over 30% of respondents cited home improvements as one of the reasons for releasing equity, up from 17% in 2009. Consolidating other debt was highlighted by 27%, up from 15%.

In addition, travelling was revealed as a key reason for 19% of customers, followed by buying or repairing a car for 12%.

Other uses included combining home improvements and debt consolidation (7%); providing a gift, such as funding a house deposit or wedding (7%); and improving or maintaining a lifestyle (4%).

However, just 1% said they would use the money to fund long-term care.

Peter Welch, head of sales and distribution at Bridgewater Equity Release, said: "Many more individuals in or reaching retirement find themselves with far higher levels of indebtedness than they imagined.

"With the credit crunch and recession biting hard in recent times, the older population has found it increasingly difficult to find remortgage or debt finance, because of the stricter criteria placed on lending into retirement.

"With this the case, individuals are now using the equity they have stored in their properties to become debt-free which not only enables them to plan more freely for the rest of the retirement but provides security of tenure in their home for the rest of their lives."

He added that with the government cuts set to impact many areas of the company, he anticipates that more customers will use equity release to either maintain or improve their lifestyle or to look after their long-term care needs, which may not be funded by the state."

http://www.yourmortgage.co.uk/news/3627339

Beautiful :D

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Now, I know my brother in law who's had to release equity to keep on top of the bills. Runs his own business but work has been non-existant.

Edited by Money Spinner

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Anyone care to explain this sentence:

"With this the case, individuals are now using the equity they have stored in their properties to become debt-free which not only enables them to plan more freely for the rest of the retirement but provides security of tenure in their home for the rest of their lives."

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Anyone care to explain this sentence:

"With this the case, individuals are now using the equity they have stored in their properties to become debt-free which not only enables them to plan more freely for the rest of the retirement but provides security of tenure in their home for the rest of their lives."

I can only assume it's an old-person "we'll give you a lump sum of cash, and a rent-free (or peppercorn) right of tenure in that house for the rest of your life, but when you die it belongs entirely to us" scheme

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IC...using your equity to repay a mortgage....with another mortgage.

Or giving away everything you worked for because you forgot the whole idea is that a mortgage should go down each year so in later life you can live rent free,work less hours retire etc.For many there wont be/isnt any equity and a lot of people are in deep do do.

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Anyone care to explain this sentence:

"With this the case, individuals are now using the equity they have stored in their properties to become debt-free which not only enables them to plan more freely for the rest of the retirement but provides security of tenure in their home for the rest of their lives."

.....to become debt free means paying off all their debts such as credit cards, car loans etc.....sometimes if they are old and have plenty of equity in their home they cash some of that equity to pay their debts but they don't have to pay any repayments the interest usually a higher rate than normal is rolled over onto the loan so the loan gets larger and larger, they can stay living in the house for the rest of their lives....when they die the house is then handed to the lender, the house is then sold to repay the loan and compounded interest.....like leaving your home to the bank in your will. ;)

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Either I'm thicker than I thought, it's the act of the truly desperate or the deeply stupid.

This is a massive shit sandwich we're all preparing for ourselves, and at some point we're going to have eat it...

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.....to become debt free means paying off all their debts such as credit cards, car loans etc.....sometimes if they are old and have plenty of equity in their home they cash some of that equity to pay their debts but they don't have to pay any repayments the interest usually a higher rate than normal is rolled over onto the loan so the loan gets larger and larger, they can stay living in the house for the rest of their lives....when they die the house is then handed to the lender, the house is then sold to repay the loan and compounded interest.....like leaving your home to the bank in your will. ;)

We lend you the money we created with the press of a button,you pay interest on real work all your life,we get the money that didnt exist back 3 times over and the house at the end. :o

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We lend you the money we created with the press of a button,you pay interest on real work all your life,we get the money that didnt exist back 3 times over and the house at the end. :o

...you couldn't make it up........renting doesn't look such a bad deal after all. ;)

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There's no moderation of comments on the article - they appear instantly, and registering on the website doesn't require verification by sending an email to a valid address, so no need to give any genuine personal details.

Have added mine; happy commenting......

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13% leap in releasing equity to repay mortgage

The number of homeowners releasing equity from their property in order to repay a mortgage increased 13% in 2010, new research has shown.

Home reversion provider, Bridgewater Equity Release found that 43% of people used equity release schemes to pay off their mortgage in 2010, compared to 30% in 2009.

Home improvements and consolidating other debt rounded out the top three reasons behind using equity release, with their popularity markedly increasing over the last year.

Over 30% of respondents cited home improvements as one of the reasons for releasing equity, up from 17% in 2009. Consolidating other debt was highlighted by 27%, up from 15%.

In addition, travelling was revealed as a key reason for 19% of customers, followed by buying or repairing a car for 12%.

Other uses included combining home improvements and debt consolidation (7%); providing a gift, such as funding a house deposit or wedding (7%); and improving or maintaining a lifestyle (4%).

However, just 1% said they would use the money to fund long-term care.

Peter Welch, head of sales and distribution at Bridgewater Equity Release, said: "Many more individuals in or reaching retirement find themselves with far higher levels of indebtedness than they imagined.

"With the credit crunch and recession biting hard in recent times, the older population has found it increasingly difficult to find remortgage or debt finance, because of the stricter criteria placed on lending into retirement.

"With this the case, individuals are now using the equity they have stored in their properties to become debt-free which not only enables them to plan more freely for the rest of the retirement but provides security of tenure in their home for the rest of their lives."

He added that with the government cuts set to impact many areas of the company, he anticipates that more customers will use equity release to either maintain or improve their lifestyle or to look after their long-term care needs, which may not be funded by the state."

http://www.yourmortgage.co.uk/news/3627339

Pure genius, so for some they are taking money which may then have the compound interest problem?

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Either I'm thicker than I thought, it's the act of the truly desperate or the deeply stupid.

This is a massive shit sandwich we're all preparing for ourselves, and at some point we're going to have eat it...

Dead right. And the more bread you've got, the less shit you eat...

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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