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It’s no surprise that more and more people are using their home as a genuine asset. With equity release lending reaching £3.89 billion in 2020, lifetime mortgages are becoming a popular option for homeowners to access the cash tied up in their home.
To help you get started, we’ve outlined below some reasons why you may want to advise on a lifetime mortgage.
Homeowners in the UK collectively hold over £5 trillion in property wealth, positioning homeowner equity as the second largest asset held by the over 55's. This shows the increasingly important role property wealth can play in people’s retirement planning.
Better regulation in the industry and more financial education available means that lifetime mortgages are becoming a more viable option for over 55s to unlock cash in later life.
What are clients using lifetime mortgages for?
During our lifetime mortgage survey in 2017, we spoke to UK advisers and asked them, “How are you using lifetime mortgages to help your clients?” Our results showed that:
|6 in 10||used the money for home improvements|
|5 in 10||used the money to repay an interest-only mortgages|
|5 in 10||used the money for family members (such as starter homes)|
|2 in 10||used the money to pay for their care|
|1 in 10||used the money for their divorce|