Home & Capital raises equity release lending

While many other equity release providers are cutting back on lending, Home & Capital has increasing the amount available through its home reversion plans.

The company has increased the maximum release amount for customers from £85,000 to £120,000.

Homeowners aged 65 and over can now take out a home reversion plan on up to 95% of the value of their property and applications made before the end of July will pay no arrangement or valuations fees.

Graeme Marshall, chief executive at Sovereign Reversions, said: “Across the country, household finances are being stretched and older people, in particular, are feeling the strain. The coming VAT increase will also hit the elderly disproportionately hard. Home & Capital is offering even more competitive rates to homeowners who need to boost their incomes.

“A significant proportion of older people have low incomes, but in many cases they are sitting on a very valuable property asset. Increasingly people are embracing the notion that their property is a legitimate asset that can be used to generate a cash lump sum; either through downsizing or via equity release.”