The increased number of products and plans available to homeowners is encouraging a lot more younger people to use equity release products.
Over the last four years, the number of 55-year olds researching equity release products has increased by 330 per cent, according to Age Partnership.
During the same period, enquires from homeowners over the age of 75 have risen by 118 percent whilst those aged 65, increased by 67 per cent.
Andrew Morris, Senior Equity Release Adviser at Age Partnership, said:
“Clients that I’m speaking to are more informed about equity release than ever before. Those at the younger end of the scale are aware that record-low interest rates make equity release a more viable solution than ever before. Once we then add in the option of making repayments of up to 15% of the original loan amount per annum, equity release then provides a later life lending solution that allows clients to reduce the impact on their estate.
“Making repayments isn’t just an option for 55 to 60 year-olds, it’s something that we should be encouraging all clients to consider. Even if it isn’t something they can take up at the present time, the option of having this facility will mean that if their circumstances change they could begin to make payments in the future.
“The repayments can be a fixed monthly amount, which can help borrowers with their budgeting. Alternatively, clients can choose to make ad-hoc payments as and when they can afford them. This flexibility means that equity release can now help people in a wider range of circumstances.”
