Have interest rates killed equity release?
Equity Release hit the record books in Q3 2022, but have rising interest rates shut the book?
The Equity Release Council reported that homeowners took out 13,542 new equity release plans in Q3 2022, breaking the 13,000 barrier for the first time.
However, equity release loan activity fell by 10% in September 2022 as equity release interest rates surged.
Equity release means taking on debt not releasing equity
Herein lies the problem with equity release, the unfortunate problem is that equity release does not mean releasing equity at all, it means taking on debt and debt has to be paid for.
Rising interest rates coupled with the increases in the costs of living hit homeowners with a double whammy. As interest rates rise those older homeowners looking to release equity to help with living costs may find themselves priced out of the equity release market when they need it most.
_________________________________________________________________________________
Twindaq: the new way to buy sell and own property
Living in a world with high house prices and rising living costs we believe there is a better way to buy, own and sell property.
Twindaq aims to bring a way to buy property without the need for a large deposit or a high income and a debt-free way to take out equity from your home
If you would like to find out more, join the twindaq waitlist
----------------------------------------------------------------------------------------------------------------------
A debt-free way to release housing equity
At twindig, we believe there is a better alternative to traditional equity release, fractional ownership, this is where a homeowner sells part of their home to release equity without the need to take on debt and avoids the cost of interest payments, especially if these interest payments are rolled up or compounded. Compound interest can significantly eat into a homeowner's housing equity, whereas fractional ownership does exactly what it says on the tin. If you sell 5% of your home, you have sold 5% of your home with no surprises and nothing else to pay. The homeowner continues to own 95%.
If you would like to join our waitlist for a debt-free equity release product click the link below to register and we will keep you updated.