New figures from the Bank of England have showed an upturn in the amount of mortgage equity being withdrawn. The Bank of England's estimate of mortgage withdrawal has risen to £8.7 billion this quarter, compared to only £6.4 billion in the same period last year. But this figure is still lower than the total figure for the same time last year, which has gradually fallen since the end of 2003 when it peaked at £17.5 billion.
It is generally believed that this change may be because of the recent period of stability in property prices, and the fact that there are still many consumers not remortgaging for the same amount as their mortgages, just taking more equity.
Our view
We believe equity release is going to become a product of choice for property rich people over the next few years. There are good schemes and bad schemes - so be careful.
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