South East most popular for equity release: Market Monitor 2011 reports
Article by Carl Liver
The latest Market Monitor Report 2011 by Key Retirement Solutions shows that the South East of England is consistently where the highest percentage of equity release is transacted. The most popular reason people take out equity release is down to home and garden improvements and this is matched across the country; however the Market Monitor Report 2011 also showed that 54% of those releasing equity in the South East of England are using equity release to pay for regular, and those unexpected bills that can heavily impact our personal finances. This compares with the national average of around 17%. Only 9% of people in the South West are using equity release to help their family, which differs greatly from the national trend which currently sees 24% of people nationwide using equity release for gifting purposes. A further 17% use the money to clear their debts compared to the national average of 31%. This report clearly shows that can be of use to many people looking for that extra bit of cash to make ends meet; however the reasons for people taking out cash from their homes varies by region, which is an area that Key Retirement Solutions are keen to further report on. People who are most likely to take out an plan are aged 65-69, with couples making the most use of the cash they release from their home. There are however, more single women (25%) who take out an release plan in comparison to 13% of men. Out of all the type of equity release schemes available, draw down options have proven to be the most popular option this quarter. The figures show that 71% of people chose a drawdown plan and 16% of people taking out a lifetime mortgage. Dean Mirfin, Group Director of Key Retirement Solutions, said, “Enhanced lifetime mortgages are now an essential part of the equity release sector.”
If you are considering a drawdown lifetime mortgage or any other type of scheme, it’s advised that you contact an independent adviser who can further assist you with your e enquiry. They can help you find out whether is the right option for you, help you discover how much cash you may be able to release from your home as well as give you further information on whether your entitlement to state benefits may be affected and how the value of your estate will be reduced.
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