Increase in equity release mortgages to manage debt

By Natasha Adamson

There has been a significant increase in the number of people in Northern Ireland and the rest of the UK using equity release mortgages to pay off debts and fund their lifestyle after retirement.

Equity release mortgage lending reached a 12 year high in 2014 with a total of £1.4billion being borrowed. New research by Key Retirement suggests that the motivation behind a third of lifetime remortgages taken out last year was debt consolidation. Equity release is seen as the more attractive alternative to down-sizing to a smaller home for thousands of property owners whose endowment policies have not performed, and have left them facing a mortgage shortfall.

Lifetime remortgages involve the interest being paid off each month, with the actual mortgage debt not being repaid until the homeowner dies or gets taken into care. Other common reasons for lifetime mortgages are to carry out home improvements and to make gifts to family members.

If you are remortgaging a property in Northern Ireland, and need a local conveyancing solicitor to handle the legal process for you, contact Wilson Nesbitt in Belfast or Bangor by calling 0800 840 9290.

For more information on property conveyancing in Northern Ireland click here.