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Impact of ‘housing slump’ on equity release customers

December 15, 2007 by admin  
Filed under News, News-Mortgages

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It is “too early” to predict the impact of the housing market’s current state on customers claims a housing expert.

If house values for equity release customers do decrease, the distance between the amount the estate will eventually owe and the value of the house could be less

“But that’s only if it’s a really long term housing price reduction,” said Anthony Rafferty, head of marketing post retirement for Norwich Union.

He added: “We are a nation talking ourselves into a housing slump by using the word slump.”

The impact of the so-called housing slump has not been felt with equity releases as much as it has with mortgages, according to Mr Rafferty.

The BBC reported that a growing number of consumers are choosing to tap the value of their home through equity release schemes to enhance the funds.

Halifax’s November House Price Index found a 1.1 per cent monthly fall in house prices.

This is the third successive month it has reported falls, with the average UK house price now standing at £194,895.

Tags: housing expert, equity release customers, number, equity release, Pension, Business Finance, word slump."The impact, current state

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