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Lifetime mortgage popularity soars among wealthy homeowners – OneFamily

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  • 11/12/2018
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The price of a property OneFamily lends on is now 59% higher than average, standing at £370,483 compared to a nationwide price of £232,554, data showed.

 

Properties lent on in the North East are 60% higher than the cost of an average home, 50% higher than the South East and 69% more in London, according to the latest figures from One Family.

The research showed that the average age of a OneFamily lifetime mortgage customer is now 68, demonstrating the increased use of the product for those at the start of retirement.

 

Regional overview

Regionally there are significant variances with the average price of a home in London being used to release capital now worth £816,000, compared to the average property sold in the area being £482,000.

In the South East outside London, the value of properties being lent against is £493,000, versus a regional average property cost of £328,000.

 

Accessing the capital for luxury activities

Managing director of lifetime mortgages at OneFamily, Nici Audhlam-Gardiner, said that equity release is no longer for consumers hoping to make up a savings shortfall, but rather a proactive decision to make the most of their largest asset.

She added: “Many older homeowners have significant amounts of money tied up in their homes and want to be able to enjoy their later years. This also means we are seeing a younger generation of customers who are at the point of retirement and want to realise their lifetime dreams whilst they are still in good health.

“We are also seeing more diverse reasons for people to access the capital in their home, and many more accessing it to fund what could be seen as relatively luxury activities such as travel, buying second properties, and helping younger family members get onto the property ladder.”

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