Let your home fund your old age
‘An Englishman’s home is his castle. Now, seemingly, it’s becoming his cash cow for old age too. Indeed, nearly three quarters of homeowners are relying on home equity to fund old age, although half of them will still have a mortgage as OAPs. So says Abbey in a new report.
House prices, for example, have risen by 113% since 1996 and for a generation used to annual double-digit property price growth; it’s hardly surprising that so many homeowners plan to take advantage of the rise in their property to help fund old age.
Abbey’s Savings Insight report reveals that five million (28%) homeowners have already tapped into the recent house price boom and released equity at some point - the most popular method of releasing equity from a property being re-mortgaging, which 44% of homeowners have chosen.
The second most popular choice is taking out a specific equity release scheme or other financial product such as a home improvement loan (30%). Downsizing to a cheaper home is the preferred option for one in five people (20%), followed by moving into rented accommodation (7%).’
Read more at Let your home fund your old age
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