Pensioners using equity release as part of debt management plans?
Pensioners using equity release as part of debt management plans?
- Wednesday, 14 October 2009UK pensioners are increasingly using unlocked funds from equity release schemes in order to
get out of debt.
That is according to figures released by Key Retirement Solutions (KRS), which indicate that 36 per cent of people using equity release schemes did so in order to pay of debts.
However, Safe Home Income Plans (Ship) director general Andrea Rozario has suggested that pensioners are in fact largely using the money to pay off their mortgage and put an end to stressful monthly repayments.
She said: "The fastest growing group of people in debt are those aged 60 and over … but I think [the increase in equity release adoption among the demographic is] more them paying off mortgages rather than unsecured debts."
KRS figures reveal that the total amount of money released in equity in quarter three of 2009 was £214.2 million.
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