Equity loans: A new lease of life?
Products that let borrowers tap into the value of their home got a bad reputation after the crash. If there is a revival, expect them to be significantly different
Equity release or ‘lifetime’ mortgages have been making a comeback in Britain, with its ageing population of unencumbered homeowners keen to boost their pension incomes.
There are now nearly 40,000 new customers every year in Britain for these products, which are advertised as the perfect solution for those who are asset-rich but income-poor.
The loans typically allow homeowners aged from 55 to 66 to draw down tax-free lump sums from the equity in ...