Is equity release an option for the future?
As the UK mortgage sector continues to struggle many experts are predicting a significant increase in equity release plans for households struggling to cover their mortgage payments. While there is no doubt that equity release programs can prove very useful for many people there is some concern about the rates available and the terms on offer.
As the cost of borrowing continues to creep higher and higher within Europe, so the cost of borrowing for equity release agents will also move higher. The very fact that the customers are seeking to release equity from their home is obviously one of the first signs of distress therefore there will be an added risk to lenders. Unfortunately, it does appear as though these factors have come together at the wrong time for those struggling to pay their mortgages in the UK and the situation is also compounded by the state of the UK property market and property prices on the whole.
The sad truth of the matter is that many people in the UK will have no option but to look towards equity release at some point in order to cover their short-term liabilities. However, it is imperative that professional financial advice is taken at the earliest opportunity to try and avoid any problems in the future. The sooner you act with regards to your financial situation the sooner you can address the problems and hopefully reduce the impact upon your financial wellbeing going forward.
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