Equity release 'could relieve pensioners' money worries'

By Sarah Engle, Tue 3 Jun 2008 - Published in Loans

Equity release schemes could help pensioners to enjoy a retirement free of money worries, according to Help the Aged.

David Sinclair from the charity said that anyone with a lot of money tied up in their home and a low income may benefit from an equity release scheme.

He commented: "It gives you a nice lump sum to spend on holidays as well as repairs and your bills. It clearly can work for some people."

However, he also stated that this type of loan is not suitable for everyone and he advised that anyone looking to unlock some of the value of their home should seek financial and legal advice first.

Equity release schemes offer borrowers a loan based on the value of their property. The borrowers continue to live in their home until they die or move, when the loan is repaid through the sale of the property.

Last week, the Financial Times cited a Defaqto report which claimed that, despite the current economic gloom, "the equity release market has remained relatively unscathed".

News Categories

News Archive

News: Equity release 'could relieve pensioners' money worries'