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Equity release figures 'are concerning'

By Sarah Engle, Fri 9 Jul 2010 - Published in Loans

The number of people attempting to pay off debts with equity release is worrying, an expert has suggested.

Recent research from Age UK found that 35 per cent of people who have turned to equity release are using the funds to clear their debts.

Commenting on the figures, Safe Home Income Plans director general Andrea Rozario said it is a "concern" that so many people need to resort to the solution to reduce the amount they owe.

However, she pointed out that people who are in large amounts of debt use equity release, "at least they know that they have still got a roof over their heads and they can have peace of mind that they have got security of tenure".

Ms Rozario also recommended that people thinking of using the solution first look into the other options open to them and seek independent financial advice on how to reduce their debts.

The Age UK research also found that 46 per cent of people want to use equity release for home maintenance, while 36 per cent will pay for a holiday with the funds it releases.