Reduced lending in the market is resulting in those who wish to raise funds having fewer options open to them. Home & Capital is bucking this trend by increasing the amount available through its home reversion plans.
For example, the home reversion rate for a male aged 70 has now risen from 43.25% to 47%. Home & Capital has also increased the maximum release amount for customers from £85,000 to £120,000. Customers are able to take out a home reversion plan on up to 95% of the value of their property.
Home & Capital will continue to charge no arrangement fees and will be offering free valuations on all applications made before 31 July. Products are available for customers aged 65 years or more.
Graeme Marshall, chief executive of Sovereign Reversions, said: “Across the country, household finances are being stretched and older people, in particular, are feeling the strain. The coming VAT increase will also hit the elderly disproportionately hard. Home & Capital is offering even more competitive rates to homeowners who need to boost their incomes.
“A significant proportion of older people have low incomes, but in many cases they are sitting on a very valuable property asset. Increasingly people are embracing the notion that their property is a legitimate asset that can be used to generate a cash lump sum – either through downsizing or via equity release.”
