Shared appreciation mortgages
Shared appreciation mortgages, their problems and uses; and help for constituents.
Financial servicesMortgagesOwner occupation
Briefing
This note outlines some of the basic features and problems of equity release type mortgages. The long period of steady house price appreciation has meant that the sums owed to banks when the mortgage is repaid appear exorbitant to some borrowers. The note illustrates examples of how problems can arise with these financial products and charts the move towards full regulation of them by the Financial Services Authority and then the Financial Conduct Authority.
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