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Prudential backs equity release option
1 September 2008 11:00
Prudential has urged retirees to be realistic about how much equity they can release from their homes, but still stressed the suitability of this option despite falling house prices.
Recent figures from Prudential revealed that outright homeowners aged over 65 had a combined £726.43 billion worth of equity in their homes in May, which was down by one per cent from February but still up by 1.8 per cent year-on-year.
The provider's director lifetime mortgages Keith Haggart has now stated that demand for equity release remains strong regardless of declining property prices, although he noted that some customers have been disappointed by what their homes have been valued at.
Mr Haggart explained that people often look at what houses for sale are priced at and do not realise that they may sell for less than this, which is particularly the case in a softening market like the current one and which is something that valuers take into account.
Nonetheless, he asserted that product holders can still generally borrow what they want to, in spite of the values of their homes falling, adding that this decline is not something that they should worry about with regards to equity release.
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