First of all, lifetime mortgages in the UK became quite the trend in recent years.
A lifetime mortgage is essentially a form of equity release.
This is attractive to the over 55’s living in the UK looking to release equity from their home.
Lifetime mortgage benefits
As a result, there are a few industries that have benefited from this occurring.
The industry sectors that have seen the lifetime mortgage benefit them are:
- Social care
The amount of money pumped into the UK economy since the lifetime mortgage was introduced is in excess of £3 billion.
The manufacturing industry benefited the most from the equity release scheme at £1.32 billion.
Next in line was the construction industry with an injection of £349 million.
Both the health and social care sectors were boosted by £203 million.
Consequently, this money has helped generate jobs in the above UK industries and boosted the overall UK economy.
Lifetime Mortgages UK
According to Property Investor Today, lifetime mortgage sales tripled from 2013 to 2017.
These figures will most likely rise in the years to come, as long as this opportunity for over 55’s is available.
On the contrary, the lenders have tactfully positioned themselves to make a significant amount of money through repayment schemes.
This scheme has been well thought out by the financial services of the UK to ensure money is being generated within the financial industry and the UK economy respectively.
You can read the detailed figures of equity release spending on the Property Investor Today website.
In conclusion, equity lenders have cashed in on a well thought out equity scheme named “Lifetime Mortgages” that benefit the lenders and the UK economy.
The future will reveal how effective this lifetime mortgage scheme has benefited the UK nation.
To read about other mortgage related topics in our blog, visit our blog post about equity release.