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  • Writer's pictureColin

What is driving the growth in Equity Release?

Updated: Apr 17, 2020

If an Englishman’s home is his castle, then increasingly, it’s also his piggy bank. House prices have increased at a rate 42 times that of inflation since the 1970s. To put that in context, if a loaf of sliced white had risen at the same rate you’d be paying almost a fiver for your daily bread! [1].

Stay Put?

Low interest rates mean that money in the bank isn’t rising in value nearly as fast. If you bought your home 30 years ago, it’s entirely possible you’d have more equity in your home than in your savings account or even pension combined! But, unlike cash, bricks and mortar cannot be so easily spent. Some people upon retirement will opt to downsize or move to a cheaper area. For those comfortable and happy in their lifelong homes surrounded by friends, family or just familiar faces – this will be a less palatable option. Equity release offers a further choice. A choice to stay put. To stay living in your home… or even, a better home!

Want to make the most of your home?

63% of Advisers have helped a client use equity release to fund home improvements [2]. That could mean adaptations to ensure a mobile old age or it could be a fancy new kitchen. It could mean a new conservatory or loft conversion. For some, it could mean the difference between staying in their own place or moving to a specialist care home. For others – it’s an opportunity to splash out and ‘make the most’ of their existing property.

Is it right for you?

It’s not right for everyone but for some it can offer an ideal solution to their retirement cash needs. Oh, and wealthy people do it too. For some, it makes good financial sense.

Contact Flexible Lifestyle today to discuss later life lending and what it can do for your lifestyle.

Source data:

[1] Shelter: Food for thought: applying house price inflation to grocery prices’ February 2013. Sliced white loaf would cost £4.36..

[2] Legal and General, November 2017. In July L&G spoke to 344 Advisers about equity release (lifetime mortgages). How are these Advisers using lifetime mortgages to help their clients? 63% to help their client pay for home improvements.

Equity release may impact the size of your estate and it could affect your entitlement to current and future means-tested benefits.


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