Home Equity
Mortgages used for property that is purchased for investment purposes are known as buy to let mortgages. This industry has progressed considerably over the past decade as more and more individuals consider buy to let as a strategy to secure their financial futures. With this significant growth, the buy to let products became increasingly sophisticated and much broader options are now available to landlords of different status to diversify their investment properties accordingly.
Alicia Munnell, the CRR's director, made a statement that "the impact of home equity on the percent of households 'at risk' is greater than that of the recent stock market crash. How baby boomers and future generations decide to use their home equity could determine how well many fare in retirement."
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