It seems like house prices are on the rise again, and that’s good news for people looking to release some equity from their home. A recent study from Pure Retirement, a company that specialises in lifetime mortgages, shows that the average property value of new lifetime mortgage customers is now over £423,000.
Homes Getting More Valuable
This represents a significant increase – 4% year-on-year and 3.2% over the last quarter. This is even more impressive when you consider that the average house price across the whole country only rose by 2.5% in the past year. This means that homes used for lifetime mortgages are increasing in value faster than the national average.
More Than Just Big Houses
While the average property value is over £423,000, the majority of lifetime mortgage customers are not living in huge mansions. The majority of customers (37%) own homes valued between £250,000 and £399,999. This shows that lifetime mortgages are becoming an increasingly popular option for people with a wide range of property values.
Lifetime Mortgages: A Growing Option
Paul Carter, the CEO of Pure Retirement, says that this increase in property values highlights the growing popularity of lifetime mortgages. These mortgages allow people to borrow money against their home without having to sell it. This can be a valuable option for those who need extra cash to help with things like home improvements, paying off debts, or simply enjoying a more comfortable retirement.
What Does This Mean For You?
If you’re thinking about taking out a lifetime mortgage, now could be a good time to explore your options. This is especially true if you’ve seen your property value increase in recent years. It’s always a good idea to speak to a financial advisor to see if a lifetime mortgage is the right choice for your individual circumstances.