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UK mortgage holders draw down on equity

Date: Mon, 31 Oct 2005

More UK mortgage holders are deciding to release the equity held in their homes.

The latest Norwich Union Equity Release study shows that 78 per cent of mortgage advisors believe that over the next six months more homeowners will draw down some of the value currently held in their homes, especially given the sharp rise in property prices over the past five years.

Releasing equity is proving especially popular in older UK mortgage holders, who are keen to access some of their house equity in order to fund their retirement plans and continue their current lifestyle.

Money released from homes cane either be paid in a lump sum to mortgage holders or used to buy an annuity, which then provides a regular income for life.

"The research proves that equity release products are now a real solution for clients wanting to access a lump sum in later life and look set to become a normal part of retirement planning," said Brendan Kearns, product development manager at Norwich Union Equity Release.


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