At Fraser Reeves, we are local housing market specialists, and we care about all aspects of the property market. No matter what move you wish to make, we are here to assist you as best we can.
Lifetime mortgages are of interest to many
In a recent report, Quilter highlighted that over 5 thousand lifetime mortgages were sold in March this year - an increase of 29% against the same month last year. The data collection was done by Freedom Of Information requests to UK financial advisers and wealth managers who sell or offer products across all loan-to values bands (from small loans up towards large ones).
The data shows that the average number of lifetime mortgages are 31% higher than 2020 and 21 percent more popular with an LTV band at 10-20%. With three months’ worth of results, this trend continues as well.
What do the experts say?
Karen Noye, mortgage expert at Quilter, said: “These figures show that equity release is soaring in popularity. While there is a place in the market for these types of products it's essential that people use them for the right reasons. The cost-of-living crisis is biting, and it is worrying to think that people are ripping equity out of their homes just to pay their monthly bills. One of the benefits of equity release is that if you don’t want to leave your home then this product can allow you to release capital but still live in your property.”
Karen concluded by saying; “However, lifetime mortgages do carry a significant risk that you may end up owing far more than you borrowed when the home comes to being sold. This is because this type of mortgage charges compound interest and if you don’t keep up with regular payments then the entire sum will compound. Therefore, you should be cautious when working out whether this product is right and make sure you seek professional advice to decide if it’s the right choice.”
Whatever property move you are keen to make, we are on hand and will do everything we can to assist you.
Contact Fraser Reeves for all your Newton-le-Willows property needs
As local agents in Newton-le-Willows, we are keen to support vendors, buyers and landlords in the area as best we can. We offer an extensive range of services, aimed at helping you make your next move with confidence.
If you would like to arrange a property valuation, or discuss your property options, please call Fraser Reeves on 1925 222555.