There are many more homeowners using equity release mortgages to access capital – whether that is then used to invest in the home or elsewhere.
The latest figures show that £4bn of capital was unlocked between October and December by equity release mortgage holders, according to figures published by the Equity Release Council.
Innovation increasingly allows people to ‘sweat their home as an asset’. Just 10 years ago it was inconceivable that households would be making money by letting their spare rooms to tourists. There are now services to let your garage out as storage space, or driveway for parking.
We are beginning to see this innovation creating more investment opportunities for investors too, which may in turn lead to further opportunities for homeowners looking to access the capital tied up in their own property.
Some advisers are already considering these increased investment choices when looking to optimise risk-adjusted returns for their clients.
Stephen Findlay is chief executive of BondMason
