Homeowners should not be worried at all about equity release

While property valuations "reflect any softening of the market", homeowners should not be concerned about the amount of equity they can release from their homes.

That is according to Prudential. The lender has said that although in the current economic climate people may be "slightly disappointed" with the evaluation of their property, they will still be able to borrow money on it.

Keith Haggart, director of lifetime mortgages at Prudential, has said that despite the equity belonging to homeowners aged over 65 falling by £7.7 billion over the past couple of months, he has not seen a reduction in inquiries in the equity release market.

Mr Haggart said that someone who was expecting their property to be worth £200,000 may find that it is now worth £180,000, "but that still means that they can do what they wanted to do. If they wanted to borrow £30,000 then they can".

He said that in terms of equity release, homeowners should not be concerned.

House Prices News posted on 28/08/2008 16:25:34