Older people turning to equity release as a debt solution
Older people turning to equity release as a debt solution
- Wednesday, 7 July 2010Older people are using equity release to solve their
debt problems or fund home improvements, suggests Age UK.
According to a new report, Housing and Finance in Later Life, almost three-quarters of the older generation have used equity release to increase their financial security or as a last resort to pay off debt.
Furthermore, previous research for the charity found that 25 per cent of those approaching retirement age had outstanding credit commitments.
Louise Overton, from the University of Birmingham and the report's author, said: "The research shows that people take out equity release for a variety of reasons with increasing numbers using it to clear problem debt. But it does not play much of a role in lifting pensioners out of poverty."
Age UK is concerned that many pensioners are living on a low or modest income and that some of those surveyed revealed that they used equity release to maintain their homes - to ensure they could stay in it.
Equity release plans are a way of releasing money. Cash is borrowed against the value of a home and the debt is repaid from the sale proceeds of the property after the borrower's death.

Recent Debt Management Plan News
56% of Brits have no life insurance which could leave family with debt problems
Wed, 04 May 2011More than half of UK adults currently have no life insurance cover, which could mean their loved ones are left with
debt problems when they die...
Brits thinking about retirement advised to seek debt advice
Tue, 03 May 2011Consumers considering their retirement options have been advised to seek professional advice, as they may end up with
debt problems in the future...
Brits planning to attend a wedding should start saving to avoid debt problems
Thu, 28 Apr 2011Consumers concerned about getting into
credit card debt to pay to attend a wedding may want to use their savings instead...
Couples planning their big day can avoid debt problems by negotiating a cheap wedding
Wed, 27 Apr 2011Couples-to-be worried about needing
debt advice in the future after paying for a wedding can ensure they avoid accruing
debt problems by negotiating a cheap wedding...