Musings of a London Property Search Agent
Three quarters of equity release specialists have seen an upturn in enquiries and expect borrowing to increase by 5pts in the next 3 months according to Citywire.
Anecdotally one of our contacts tells me he can borrow at 7.5pts and receive 11pts on his presumably considerable savings. But then with the current rumours of major US banks in trouble, perhaps rate chasing is best left to the experts, or at least those who can afford to lose.
Financial planners warn of the equity release gang blowing the money on unnecessary conumables and suggest loans which pay out on a monthly basis to cover necessary purchases. One of our small investors has secured just such a loan from her existing lender, which will be used to part-fund a simple house to flats conversion. The loan will work very much like a self-build mortgage, but is flexible so the borrowee can draw down funds as required, without the need to have work signed off at each stage.
Even taking the current market into account and with very pessimistic future sales predictions, her plans should leave her with a beautiful 2 bed 2 bath flat and the proceeds from the flat she sells will drastically reduce her mortgage. A great example of the little guy – or girl proving it’s still possible to make money from property in a downturn!
By using a London Property Search Agent like us you can weather the storm of the current downturn.