The price of the average property OneFamily lends on is now 59% higher than average, at £370,483 versus a nationwide price of £232,554.
The price of the average property OneFamily lends on is now 59% higher than average, at £370,483 versus a nationwide price of £232,554.
OneFamily said the trend of lifetime mortgages being used on increasingly expensive homes demonstrates they are a product of choice in retirement planning for an increasing number of homeowners.
This is also borne out by the average age of a lifetime mortgage customer, which is now 68.
Nici Audhlam-Gardiner, managing director ofLifetime Mortgages at OneFamily,said:“As the data shows, equity release is no longer a reaction for consumers to make up a savings shortfall but rather a proactive decision to make the most of their largest asset.
“Many older homeowners have significant amounts of money tied up in their homes and want to be able to enjoy their later years.
“This also means we are seeing a younger generation of customers who are at the point of retirement and want to realise their lifetime dreams whilst they are still in good health.
“We are also seeing more diverse reasons for people to access the capital in their home, and many more accessing it to fund what could be seen as relatively luxury activities such as travel, buying second properties, and helping younger family members get onto the property ladder.
“The products that OneFamily offers are, in part, driving this trend, with many wealthier homeowners choosing a mortgage on which they can pay the interest monthly thus avoiding roll up costs.
“Homeowners taking out a OneFamily lifetime mortgage have the option to pay the interest back monthly, pay up to 10% of the total value of the loan each year or pay no interest until the end of the loan.”
Regionally there are significant variances with the average price of a home in London being used to release capital now £816,000, compared to the average property sold in the area being £482,000.
In the South East outside London the value of properties being lent against is £493,000 versus a regional average property cost of £328,000.
