Independent Financial Life Planners Bishop's Stortford: Owning your home outright

Monday, 30 March 2015

Owning your home outright

As more and more people now own their homes outright, Enable’s IFAs in Bishop’s Stortford wonder what kind of effect this might be having on the market as a whole? To have that choice, of owning your home outright is a privilege that may seem inconceivable for younger generations, even though many people are paying down their mortgage debt rather than leave their savings to gather dust in a bank account. "Leaving money in savings is terrible at the moment," says Nick Hopkinson, director of property company PPR Estates.

Part of the reason behind more people owning outright is simply to do with an aging population who have owned homes through several generations. As Kate Faulkner, director of PropertyChecklists.co.uk, points out: "We have now had several home-owning generations, so people are inheriting homes outright, helping to pay off their debts or their mortgage early" which also contributes to the higher number of debt-free homeowners.

"Cashed-up owners", as Ben Podesta from Domus Nova estate agency describes them "create two opportunities for the sales market. One, they downsize, which means selling and buying – helping the movement of properties. Two, they give money to their offspring, which then have no need for mortgage or are able to buy a bigger first property." The famous 'Bank of Mum and Dad' phenomenon is completely intertwined with the increasing numbers of older, mortgage-free home-owners who are able to help the next generation. Some believe it is partly why property prices have continued to rise since 2000, as money from that equity allows younger people to afford the higher deposits required.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.