Freelancers hoping to get their first contractor mortgage might be interested to learn of a suggestion made by the director general of the CBI. John Cridland recently suggests that first time buyers should be allowed to tap into their pension fund to help raise the necessary funds to buy their first property.
One Warwickshire estate agent said he applauded any move that would revitalise the flagging housing market, but it was important to take into account the long-term consequences of such an action. One obvious problem is that if you take money out of your pension fund now, you’re using money that should be going towards funding your retirement?
Meanwhile, equity release advances increased to £206.2 million in the third quarter of 2011, according to SHIP.
Safe Home Income Plans, the trade body for equity release, said the number of customers grew from 3,710 in the second quarter to 4,148 in Q3 and now stands at the highest level since the start of last year.
The average equity release product was £49,703 and although this was virtually the same as the previous quarter, it was an increase of 6% on the comparable period last year.
SHIP’s director general, Andrea Rozario, said the equity release market had an excellent third quarter. There is an enormous amount of wealth locked up in properties and for a lot of people this wealth is their greatest asset. The population in the UK is ageing and many people have not made adequate provisions for their retirement. SHIP expects to see a significant increase in demand for equity release products in the next few years, she added.
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