Equity release growing in popularity

Posted: 13 Jan 2009 10:00:17 GMT

The equity release market is set to grow by £200 million by the year-end, showing a significant growth in the popularity of the choice among homeowners to release equity to ease their own financial woes.

Set to reach a value of £1.4 billion by the end of the year, the equity release market is enjoying confidence from members of the Safe Home Income Plans members.

"People … are finding that their finances are being squeezed, so many are looking for ways to boost their income, and equity release is one of the ways in which older homeowners can do this," said Sharon Bratley, chartered financial planner at Fairinvestment.co.uk.

"Falling house prices will of course affect the amount of money available, but equity release remains a popular option, which for many people makes perfect financial sense, especially now."

However, many homeowners will potentially be sceptical of such schemes, and with property values shrinking, the amount of equity available may not suit the needs of all homeowners.

Another popular option could be to downsize from a large home, which could free up a great deal of surplus cash.

Homeowners hoping to achieve a high sale price when downsizing could benefit from selling a property online.



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