Homeowners advised to release equity "sooner rather than later"

Posted: 03 Jun 2008 13:09:21 GMT

Equity release is not affected by the current "short-term instability" in the economy but homeowners wanting to release capital from their property should act now.

Equity release is not affected by the current "short-term instability" in the economy but homeowners wanting to release capital from their property should act now.

That is according to the Saga Group, who advised that the amount of money equity release will provide decreases if the value of a property falls.

Alex Edmans, Saga personal finance adviser, said: "If you are considering arranging equity release in the near future, then it might be advisable to do so sooner rather than later."

Mr Edmans has warned homeowners to ensure that they have a 'no negative equity guarantee' when they secure their deal and that consumers "fully understand the policy, the risks and the costs involved".

The Land Registry's house price index revealed house prices dropped by 0.2 per cent in April but that means the average house price in the UK is still £183,626.

There are still areas, such as south London, that have experienced appreciation in value, according to latest research by estate agent Hamptons.


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