subject: Could Equity Release Counter Biggest Drop in Family Income Since 1949? [print this page] Could Equity Release Counter Biggest Drop in Family Income Since 1949?
The annual report from the Office of National Statistics (ONS) has revealed that gross domestic product per head of the population fell by a staggering 5.5% during the recession. To put this in context, this is the sharpest decline since the end of the Second World War and reveals that families have seen their wealth fall significantly since 2007.
The report said the value of an average individual, including property and savings, has fallen by 17,000 since 2007. The ONS Report also concluded that in 2008, the amount an average family spent each week was 471 the lowest level since 2001. As a result, families are feeling the pinch a lot more than previous generations which is why many of them are looking to older relatives to provide financial help by releasing some of the value locked into their homes.
Those family members over the age of 55 and with a property of their own that's worth more than 60,000 can, via alifetime mortgage or home reversion plan, release cash to help younger family members who may have lost their jobs, are struggling with increased living costs or have had to take a drop in income and are finding it difficult to meet mortgage payments or repay debts.
One of the most popular uses ofUK equity release schemes is in fact helping the family. And it's not just helping to pay off debts or with day to day living expenses; some parents and grandparents are helping to fund a good education or are stumping up the deposit for a first home. And they are proud to be doing so.
Aspecialist equity release adviser will provide expert guidance to homeowners wishing to find out more about releasing cash from their properties.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
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