As the economic picture worsens, many homeowners are turning to equity loans as a means of staying afloat. However, falling home values have put a crimp in many of these plans, and now, instead of being able to get an equity loan, many are finding that they actually owe more than the property is worth. Although these equity loans are beneficial, this is only true when values are up.
Mark Bodega, director at HiFX, said: “Bearing in mind that 2007 was a record year for emigration, the fact that even more people are looking to move abroad this year shows that there is now a very real desire to escape some of the problems in the UK economy.
“However the problem many people are being confronted with is a simple one - they cannot sell their UK property and, without this equity from the sale of a house, they don’t think they can fund their dream move and so are putting their move off.”
“However buy-to-let mortgages can sometimes have higher fees so émigrés need to seek independent financial advice to check that remortgaging is the best option for them and the mortgage product best fits their needs.”
Related reading: Equity Loans
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