Will the London Property Market be Hit by the Mortgage Market Review (MMR)?
May 19th, 2014
The Financial Conduct Authority (FCA) has now implemented the Mortgage Market Review (MMR). In fact, the Financial Services Authority began the process in 2009 after the subprime mortgage debacle. The idea of the review is to reform the mortgage market to ensure avoidance of a worldwide disaster like that of 2007. For many first time homebuyers it is making it more difficult for them to secure the down payment and get onto the property ladder whether it is in London or not. The good news is that many retirees, over 55s, are in London and they have significant equity in their homes. This equity can be released to help their children with the down payment they require. There are different equity releases such as interest only lifetime mortgages, impaired equity release schemes and drawdown lifetime mortgages. …read more
Why London Gentrification Sees Equity Release Plans Prosper
May 19th, 2014
Savills recently released census data regarding the gentrification of London. Their results show that wealthier individuals are returning to London and buying up property. This is creating some interesting situations. One property is becoming lower in supply as demand is up. This in turn is creating a lovely increase in housing values throughout Greater London. As a result of better housing values, over 55s are tapping into equity release plans to take advantage of the rise of the equity stakes in their homes. …read more
Why Are Sales of Hackney Equity Release Schemes Booming?
May 19th, 2014
Hackney is just one borough of Greater London that has seen a drastic change in property market values in recent years. A lot of this has to do with the Olympic effect. The Olympics brought back hope that London was in recovery or would soon recover, thus helping the rest of the UK to end the recession. Combined with the Cross Rail project nearing completion in 2018, urban life is sparkling right now. There is no longer a need to be in rural areas for affordability, when better transportation and more return on property investment can be found. Hackney has seen an increase of 44 per cent and is considered one of the fastest growing areas of Greater London right now. For over 55s living in Greater London experiencing housing price increases, equity release schemes are becoming imperative topics. …read more
How London Equity Release Schemes Benefit from Rising House Prices
May 16th, 2014
Anyone over 55 living in the Big Smoke is currently benefiting from the exceptionally rising London housing prices. Figures in 2014 have shown that yet again it was UK’s capital seeing the focus of where prices showing the greatest increase. London property values on average soared by 17.7% in February 2014 compared to the year earlier. So how can this growth in London’s equity benefit the over 55’s, or those already in their retirement? …read more
Why Equity Release Schemes are becoming the Saviour for Londoners with Interest Only Mortgages
May 16th, 2014
On the cusp of retirement and yet your mortgage is not repaid in full? Numerous Londoners face this situation and with the Mortgage Market Review (MMR) restricting lenders it is becoming difficult to see what the future can provide in the way of comfort. For those who had an endowment on an interest only mortgage, most are finding it has fallen short to cover the entire amount owed. Others chose a different mortgage with no repayment vehicle. Trying to locate a solution for your retirement years is getting difficult for those over 60. Unless you consider the pros and cons of equity release, which is one solution to the problem of mortgages into retirement. …read more
Compare Aviva Equity Release Deals Independently Before Taking the Plunge
April 25th, 2014
You should never take the first deal you see? When doing research into the best equity release deal, as with any big financial decision, you should always shop around and compare your deals. No two equity release brokers have the same pricing structure. As long as the client has the wherewithal to make the right comparisons they will be able to find the cheapest deals. …read more