Home equity can pick up when retirement lets down

Posted 2007-11-10

 

Technical Director of the Pensions Advisory Service, Des Hamilton, has suggested that housing price increases over the past fifteen years has caused many homeowners to see their homes as investments.

As such, it has been suggested that elder Britons may intend to supplement their retirements and pensions by mortgaging their homes and releasing the equity found therein. 

Mr. Hamilton further added, “It may well be that in time a lot of people in the present generation will be able to release the equity in their homes. I think it is at the back of a lot of people’s minds.”

However, he also suggested that it may be a “misconceived idea” that house prices will continue to grow in same pattern of equity as seen in recent years.

When retirement saving fall short, it may be advisable for elder homeowners to keep a keen eye on the housing and lending industry to position themselves for the best possible move if considering releasing some equity from a their property.

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