Equity release stops the vicious cycle of retirement debt
Nearly a third of all equity release customers are using the value of their property to alleviate retirement debt, according to research.
According to the Equity Release Council, not only are more people starting their retirement in the red but many are borrowing further amounts as time goes by. This is therefore placing greater on their limited finances as repayment charges increase.
Richard Equity is the Head of Equity Release at Goldsmith Williams. He understands how quickly things can escalate:
“A large proportion of retirees do not only have to survive on a significantly smaller retirement pot than they intended but they are also seeing the cost of living rise on a regular basis. As a result monthly outgoings get bigger and bigger and to try and combat this many extend overdrafts or their credit card limits. This only exacerbates the problem because they have to then pay out even more to account for extra amount borrowed. It is a vicious circle.
“Equity release can help stop this dangerous pattern of behaviour. By releasing some of the equity tied up in a property, retirees can consolidate and repay any outstanding debts and enjoy the stress free retirement they signed up for.”
Content correct at time of publication