Downsizing property 'not a silver bullet for debt problems'

Tuesday, 20 September 2011 10:16

Downsizing property 'not a silver bullet for debt problems'

Downsizing property 'not a silver bullet for debt problems'

Those struggling with debt management problems will often find downsizing their property more challenging than they originally believe, an expert has claimed.

David Wright, managing director at Sixty Plus, has highlighted the fact that this form of equity release is far more difficult than most people give it credit for.

He highlighted the emotional difficulty of moving from somewhere that has been lived in for a long period and the stress that moving house can put on people.

The expense of dealing with the move, including estate agent fees and stamp duties, can also limit its effectiveness, he claimed.

Mr Wright said that the personal elements of the decision, rather than the financial ones, can prevent people from using this technique to relieve their debt management issues.

Paul Holmes, chief executive of Firstrung, recently warned that many homeowners have been left facing negative equity due to falling house prices, although the effect of this has been reduced by the low interest rates.

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