Monday, August 18, 2008
Can’t sell, reverse-mortgage instead
Older homeowners are stepping up their interest in unlocking equity built up in their homes as the credit crunch and falling property prices reduce their potential income in retirement. Hodge Equity Release – a provider of schemes that can unlock the value of a home while letting the owners continue to live there – has reported a 75 per cent increase in inquiries to independent financial advisers in the past three months. Prudential said it had seen a similar increase in the sales of its lifetime mortgage products in the first half of 2008 compared with a year ago. Norwich Union has revealed it has “more than doubled” the number of quotations it gives for equity release plans since the beginning of the year.