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Bloomfield Financial's Blog

The Bank of Nan and Grandad

Written by John J Bloomfield

Bank Of Nan and GrandadLast year the BBC  reported that the age of an average first time property buyer was now between 27-34 depending on where in the country you happen to live. It's not that surprising that the age has been creeping up over that last couple of decades as house prices have increased exponentially and wages haven't it has become harder and harder for first time buyers to raise that essential deposit.

According to the Daily Mail the average first time buyer needs a deposit of more than £30,000 that's more than the UK's reported average salary.

Traditionally equity release or lifetime mortgages have been marketed as a way for retirees to release equity from the property to fund a more luxiourous lifestyle but of course the funds can be used for almost any legal reason. Many people who would qualify for a lifetime mortgage are reluctant to do so because they feel that they would be 'taking away' the families inheritance.

Of course though Equity Release isn't just to fund cruises and 'spend the kids inheritance' it can be used to pass on the inheritance early to help children and grandchildren on to the property ladder. 

Lifetime mortgages are available to anyone over the age of 55 who owns their home, and no repayments have to be made though you can if you want to, so in the right circumstances it can be the ideal vehicle to allow those whose biggest asset is their property to help out a younger generation seeing them benefit from their inheritance while you're still alive.

If you'd like to consider this as an option then get in touch for a free no obligation meeting to discuss the feasibility in your circumstances.

It is important to understand the risks and cost associated with a lifetime mortgage. It will reduce the equity in the property as well as the amount of inheritance you can leave your beneficiaries, It is also important to understand that access to benefits may be limited or unavailable.

 

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