Research reveals more than £23bn could be available to over-55s living in Yorkshire via equity release, according to new estimates published by Canada Life.
The statistics which are based on public data on UK property and Nationwide Building Society house price figures, show that house prices in Yorkshire increased a lot quicker than anywhere else in the UK in Q3 2018. As a result, the total value of property wealth Yorkshire’s over-55s could access via equity release is estimated to have gone up from £22.9bn to £23.6bn.
Across the UK, the total amount of housing wealth potentially available to over-55s through equity release has increased to £382.3bn. Much of this is driven by house price growth outside London and the South East.
Alice Watson, Head of Marketing and Communications at Canada Life Home Finance, said:
“As equity release continues to grow in popularity, increasing numbers of over-55s are using property wealth to fund retirement alongside other assets. As well as making home improvements and supporting day-to-day living, people are increasingly unlocking property wealth to support family members. This is happening across the country, counter to the typical view that activity is only focused on London and the South East.
“These figures are estimates, and equity release will not be suitable for everyone. But with house price growth continuing both in Yorkshire and the rest of the country, there is the potential for more homeowners to take a holistic view of all their assets – including property – and consider the support they can provide in retirement.”
This will assist with new research in 2018 showing that unsecured debt amongst 55 -74 year olds has risen by 34% over the last four years – which is more than twice the national average. This growing trend of unsecured debt amongst the older age groups is of great concern due to it placing a huge burden on their life savings or pension as they head in to retirement.
Rising house prices across the country mean that many homeowner of this age group may now have a considerable financial asset. Therefore, releasing equity would be an option to clear debts thanks to the rise of a regulated specialists mortgage known as a ‘Lifetime mortgage.
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