Equity release 'might be on the decline'
Decreasing numbers of homeowners are to use equity release to fund their retirements, thanks to declining house prices.According to insurer MetLife, around one third of people feel "less confident" about this form of borrowing - a trend which could signal a decline in its popularity.The credit crunch has caused a constriction on mortgage lending, which means that home loans deal numbers are running at less than half their rates of 12 months ago.House price surveys from Nationwide and Halifax also claim that average prices have dropped by six per cent over the past year.Commenting, MetLife's chief executive Ed Gardner said: "The party is over for the moment at least in the housing market, with most commentators agreeing that prices will fall this year and possibly for another two years. "That ought to act as a wake-up call for people who have assumed that their property is their pension. Of course, equity tied up in your home can form part of retirement planning but, as recent events have shown, this does not provide a guaranteed pension. Saving into a pension is tax-efficient and should be a vital part of financial planning."
Share this..
Related stories
Glossary Of Investment Terms (B)
Balanced Fund
An investment portfolio which is diversified across a range of asset classes which typically include shares, fixed interest, property and cash.
Balanced Manager
An investment manager with experience in asset allocation and the supervision of portfolios containing a variety of different investments. The aim is to create a balanced investm...
What will happen if the UK coalition government falls apart?
While there have been murmurings of discontent amongst the Conservative Party and the Liberal Democrat party with regards to the makeup of the coalition government, so far we have seen no truly visible signs of cracks. However, there are strong rumours that Vince Cable, the business secretary, is unhappy with the current immigration policy which the UK coalition government has put in place, which...
Read MoreProperty investors suffer as capital gains tax increased
The new coalition government has confirmed that capital gains tax on property assets will be increased from the current flat rate of 18% with speculation the new figure could be as high as 40%. This is a bitter blow for the UK property sector which has been under pressure for some time now but it is believed that the additional income created will be used to increase the income tax threshold to th...
Read MoreBSkyB forced into a corner over ITV stake
A three-year battle to overturn a UK competition commission ruling that BSkyB should sell down its 17.9% stake in competitor ITV looks like coming to an end. The Court of Appeal yesterday upheld the competition commission ruling that BSkyB should sell its 17.9% stake down to 7.5% due to "undue influence" the stake gives the company over ITV. While BSkyB has 28 days to consider a further appeal...
Read MoreWhy is the UK obsessed with property?
The Liberal Democrats have made a number of observations about the UK economy which have struck a cord with many observers. They are the first party to question the UK's obsession with property which literally rules the UK economy. Unlike many countries around the world, the vast majority of UK citizens own their homes when many countries have a culture of renting. This obsession with owning pr...
Read More