FCA to look into helping the elderly unlock the value of their homes
Published: 30/10/2015
Many people worry about the cost of care in later life, however many people don’t realise the number of care options that are now available.
Many people worry about the cost of care in later life, however many people don’t realise the number of care options that are now available. One of the options is Equity relase, which most people aren't taking advantage of. A loan may be taken out against the property which will provide you with cash available to help fund for care.Recently at the mortgage conference held by the FCA on 07 September, 2015, Christopher Woolard, Director of Strategy and Competition in his speech pointed out that the UK has one of the fastest ageing populations in Europe and it is forecasted that there will be 244% increase in the number of over 85s in the next 35 years.
Relating this to the mortgage market there is now a problem of having an "older population that is increasingly asset-rich, but cash-poor."
Mr Woodward said;
The average pension pot is £30,000, yet a significant number own property assets of around seven times that number or more.... The ability to access some of that asset, as a restricted lump sum or as a gradual income, could make a significant difference to people’s lives.
While there has been efforts to clean up the market, there are other who still feel it is costly, both upfront and over time. On the other hand those homeowners that have worked hard over the year's would see the benefits of having to remain in their own homes.The UK and EU equity release market is still relatively small, with only 13 member states participating; which begs the question of why? Is it image or are there barriers to enter the market?
Mr Woodward also said;
We believe there is a debate to be had about what products and markets could exist and whether more entrants and innovation here might benefit consumers with greater choice and improved products.
Certainly, you cannot avoid the need to engage on what is a fundamental question: what impact will the ageing population have on the UK’s mortgage markets as we move forward?
Read the full articles from Citywire.co.uk and fca.org.uk.Certainly, you cannot avoid the need to engage on what is a fundamental question: what impact will the ageing population have on the UK’s mortgage markets as we move forward?
Bluebird Care has recently created a partnership with Care Planning Services (CPS). CPS allows our customers to receive high quality, specialist legal and financial advice if ever needed to ensure that you get the quality later life care that you need and deserve. Read more about CPS services and the options available to you to fund your care.
