Rudy Khaitan, managing partner of Senior Capital emphasises the changing perception of equity release as a potent financial instrument to tackle the cost-of-living quandary. He notes that equity release has evolved into a tool for asset-rich pensioners to alleviate financial strain.
Original Article:
The demand for equity release has witnessed a substantial upswing, with nearly half (44%) of all equity release applications in the first quarter of this year being driven by remortgaging, according to recent data from 55Plus.
The surge in applications is attributed to the escalating mortgage rates and stern warnings from the Bank of England about potential higher monthly repayments.
This trend underscores the urgency among individuals aged over 55 to tap into the capital locked within their properties, in order to confront mounting costs without resorting to property sales.
Rudy Khaitan, managing partner of Senior Capital emphasises the changing perception of equity release as a potent financial instrument to tackle the cost-of-living quandary. He notes that equity release has evolved into a tool for asset-rich pensioners to alleviate financial strain.
Beyond augmenting their own standard of living, pensioners are leveraging their property wealth to facilitate their children’s entry into the property market, a move bolstered by the prevailing average 2-year fixed mortgage rate nearing the 7% mark.