Cost of living rises 'lead many to consider equity release'

Tuesday, 20 September 2011 10:18

Cost of living rises 'lead many to consider equity release'

Cost of living rises 'lead many to consider equity release'

Rising costs of living and the risk of needing debt advice are leading more people to look into equity release, an expert has claimed.

Andrea Rozario, director general at Safe Home Income Plans, has highlighted the fact that those in retirement are currently struggling to maintain their standard of living and are examining alternate methods of keeping afloat.

He said that this is one of the key drivers for equity release, as many retirees have seen the value of their pension pots diminished due to the credit crunch.

"Clearly equity release – as their biggest asset – is something they are going to be turning to more and more and we're likely to see that even more in the future," he explained.

Mr Rozario added that pension rates have fallen far lower than property prices, meaning that housing is an asset that these individuals can still make use of.

Paul Holmes, chief executive at Firstrung, recently warned that homeowners are currently facing problems with negative equity due to falling house prices.

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