Es­sen­tial news for the first-time buyer

Belfast Telegraph - Propertynews - - Home Finder -

HAV­ING spent years pay­ing off their own mort­gages par­ents are now in­creas­ingly re­leas­ing eq­uity on their homes in or­der to give their chil­dren a chance to get on the prop­erty lad­der.

Eq­uity re­lease spe­cial­ists Re­tire­ment Ad­van­tage have es­ti­mated that in the first half of 2016, 32 first-time buy­ers were helped onto the hous­ing lad­der ev­ery week as a re­sult of an eq­uity re­lease prod­uct.

The fig­ures re­veal the ex­tent to which older fam­ily mem­bers are us­ing eq­uity re­lease to gift to younger rel­a­tives in this par­tic­u­lar way.

The com­pany’s own fig­ures re­veal that in the first half of 2016, 7% of their cus­tomers said they were pur­chas­ing an eq­uity re­lease prod­uct so that they could help a first-time buyer.

Over the same pe­riod, sta­tis­tics from the Eq­uity Re­lease Coun­cil show that there were 11,846 new eq­uity re­lease cus­tomers na­tion­wide.

Alice­wat­son, prod­uct and com­mu­ni­ca­tions man­ager at Re­tire­ment Ad­van­tage Eq­uity Re­lease, said: “In re­cent months and years the rea­sons for buy­ing eq­uity re­lease have di­ver­si­fied with real fer­vour.

“Per­haps the most strik­ing devel­op­ment we’ve seen so far this year is the pro­por­tion of cus­tomers telling us they want to un­lock some of the wealth in their prop­erty to help a fam­i­ly­mem­ber get onto the hous­ing lad­der.

“If you ap­ply this trend across the coun­try, it is no ex­ag­ger­a­tion to say that eq­uity re­lease is mak­ing a sig­nif­i­cant im­pact on the abil­ity of first-time buy­ers to own a prop­erty.”

Mswat­son said that this latest rea­son for eq­uity re­lease was yet more ev­i­dence that prop­erty wealth is now seen as a vi­able and flex­i­ble re­source in re­tire­ment, along­side pen­sions and other pots of sav­ings.

She added: “The cus­tomers we deal with want to do some­thing spe­cial like go on the holiday of a life­time, help a grand­child buy a home, or sim­ply have a bit­more cash avail­able to live more com­fort­ably in re­tire­ment.

“They recog­nise that eq­uity re­lease can be the ideal ve­hi­cle to help them achieve this.”

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