Homeowners that are “asset rich but cash poor” can benefit from utilising so-called equity release schemes, a building society has advised.
Such schemes take the form of a secured loan against the homeowner’s property and can in effect be a second mortgage.
A Norwich Union spokeswoman said that taking part in an equity release scheme can have “considerable impact in allowing people to access cash they would be unlikely to get any other way”.
Sarah Horner added that equity release can also allow people who need money “to stay in their homes instead of having to downsize or move”.
And she explained: “People who’ve bought their house 20-25 years ago, the amount of equity tied up in it is so much more than they would have paid for it – so that obviously does have an impact.”
In related news, it was revealed today by Halifax Estate Agents that the majority of house hunters are looking for a property “in close proximity to the countryside”.
A quarter of respondents to the poll conducted by the body said this was a key criteria in their search for a new property.
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