Equity release is a good move for second home investment
first half of this year. That’s a 20 per cent rise compared to the same period last year.
Retired Scottish homeowners released on average £45,000 tax-free by cashing in on their homes during this period.
Key’s Market Monitor found that the main reason people release property wealth is to fund home improvements, with 64 per cent using the cash this way.
Other reasons for releasing equity were to clear debts, with three in ten pensioners using the cash boost this way, and a further 23 per cent used it to repay their mortgage. More than a fifth used it to help relatives. Dean Mirfin, technical director at Key Retirement, says: “Property wealth is making a huge contribution to retirement planning, and that is demonstrated by the growth in the value of equity being released in Scotland.
“Across the country, a 20 per cent increase in lending demonstrates just how popular equity release is in helping improve retirement finances.
“Equity release is a real alternative for over 55s who are seeing traditional retirement income solutions squeezed by historically low interest rates, and pension incomes hit by record low annuity rates.”