Expectations are running high in the equity release market that home reversions plans could become a more popular choice in view of the current housing & economic climate.
It is common knowledge that in periods of low house price inflation, home reversions can become the favourable option as opposed to the roll-up lifetime mortgage.
The two comparable equity release schemes can experience different fortunes in such a static housing climate.
In summary, a home reversion scheme involves selling a percentage of the value of the property to the reversion company in exchange for a lease for life.
Therefore, in times of low house price growth the reversion company will not make as greater profit, as they will not benefit from the property value increasing. Continue reading ‘Are Home Reversion Schemes Turning Back the Years?’ »