Cash-poor Brits
Freeing up money tied up in property by taking out an equity release mortgage is becoming more popular, according to a leading financial advisor.
The rise in the number of people opting for this financial product has been attributed to the “property-rich, cash-poor” lifestyle many Brits are enjoying at the moment, according to Ark Financial Planning, which specialises in taxation and trusts, pensions and mortgages.
However, the company’s co-founder and co-director, Phil Perry suggests it is a viable alternative to downsizing houses, which may not be possible for many people.
He explained: “There are only certain people that will actually benefit from a downsize of a property, and it’s those that have properties that have gone up in value.
“You do find that people who have got nothing will try to release as much as they can and it will impact on the benefits that they may have been receiving.”
The Society of Equity Release Providers revealed earlier this month that it expects a surge in equity release, caused by lenders attempting to strengthen their capital bases and concern over interest-only mortgages.
