Rising property values are making equity release an increasingly popular financial choice for people who want to free up capital.
Many people see this as a way of adding to their retirement income, while others are concerned that higher house values will leave loved ones with high bills for inheritance tax.
"Property prices have increased so much that people are realising that whilst five or ten years ago they wouldn't have been liable for inheritance tax, they now are," comments Murdo McHardy, the head of product development and marketing at Scottish Widows Bank.
He says that people now realise that their homes are worth a great deal more than when they bought it originally.
Mr McHardy adds that some property owners become concerned that they have not made adequate pension provision and see equity release as a way out of poverty in their retirement.
He points out that equity release was popular 15 years ago, but a lack of regulation and subsequent mis-selling gave it "a slightly bad name".
However, Mr McHardy states that newer products now have "a lot more control and regulation".
The two main types of equity release are lifetime mortgages and home reversions.
Latest figures from the Council of Mortgage Lenders reveal that outstanding equity release mortgages now total 105,000. These are worth over £5.3 billion.
Equity release mortgages popular, expert says
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Equity release mortgages popular, expert says
Wed, 08 Mar 2006
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