Homeowners turning to equity release to maintain standard of living
It would appear long gone are the days where equity release was used for life’s luxuries; in the current financial climate many older homeowners need, rather than want, to unlock the funds tied up in their property.
The plight of the retiree has been almost as well documented as that of the first time buyers and it feels like their financial difficulties are escalating.
There are many reasons which are contributing to increasing numbers of people using equity release. These include:
- Paying off mortgages, particularly those with an interest-only mortgage
- Funding long term care
- Declining State pensions
- Dwindling annuity rates
- Paying off loan or credit card debt
- Increasing fuel bills and general cost of living
- Offering children and grandchildren an early inheritance.
Richard Espley is the Head of Equity Release at Goldsmith Williams:
“As many face the prospect of a rather meagre retirement, equity release could offer a much needed financial lifeline.
“Equity release allows a homeowner to utilise some of the collateral in their most valuable asset. They also retain the right to live there, something which is very important. Previously homeowners may have had to consider downsizing as a way to fund retirement, a stress many would prefer to avoid at the best of times.”
Content correct at time of publication