Homeowners are taking cash out of their homes to boost their retirement income at the quickest rate since 2004, suggests new figures.
Mortgage equity withdrawal (MEW) rose to £14.6bn in the last quarter of 2006 – from £12.2bn in the previous three months - according to the statistics from the Bank of England. In total, £49.7bn was released from homes in 2006, up from £36.6bn in the previous year. MEW allows homeowners across Britain to release equity tied up in their property to pay it back at a later date and is often used to make home improvements or pay off debts. A spokesperson for Yourmortgage.co.uk says increasing property value means this will continue. “More and more older people are turning to equity release ...
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