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'
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.
- Tags:
- debt,
- equity release,
Comments
Finance articles
-
Brits getting more concerned about debt
Brits are becoming increasingly concerned about debts and other personal finance issues, according to a study by Unbiased.co.uk.
-
Young people struggling to save
Young people are finding it increasingly difficult to save, which could lead to them taking on more credit card debt to buy big-ticket items.
-
8% of Brits own a secret card
Eight per cent of Brits have a credit card or prepaid card that they keep secret from their partners, new figures have shown, which could lead to a rise in the number of people with debt management problems.
-
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.
-
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.
Related stories
Bank of England data shows UK households pay down mortgage debt The latest quarterly Housing Equity Withdrawal report shows UK households continue to pay down mortgage debt combined with a lack of demand for new mortgages. |
Why equity release is a better way to borrow than personal loans If you want an effective way to borrow, there are several ways you can do this. While personal loans are one option, when you think about the advantages on hand with an equity release plan it may be the latter you are most inclined to take out. |
Why an equity release plan is a better way to raise finance than personal loans If you're looking for an effective way of raising finance, you'll find there are a number of ways that you can do this. And while personal loans can be one possible option, when you think about the advantages that are on hand with an equity release plan it may be the latter product you are most inclined to want to take out. |
Prudential reports debts down for people entering retirement The Prudential's 'Class of 2013' retirement report shows that the average debt a person takes into retirement has fallen by 18 per cent in the last year. |
Brits repay £122b more on homes than borrowed since 2008 Housing equity withdrawal fell in the first quarter of 2012, latest figures show, meaning fewer people borrowed against their homes for other major purchases. |
Clear Christmas debt quicker with a balance transfer credit card Next week sees the arrival of credit card statements detailing Christmas spending. If you are dreading the arrival of your bill consider switching to a balance transfer credit card. |
The cheapest ways to pay off Christmas debt If you are dreading your next credit card bill after living it up over Christmas then take control of your finances and find the cheapest method to pay off your debts. |
seven in 10 Brits would use property to fund retirement Data released from the Equity Release Council suggests more than seven in ten people in the UK would consider using their home to boost their retirement finances. |
Latest Company Articles
- What the new state pension system means for your retirement
- How to arrange finance for an overseas property purchase
- Tips for contractors to prepare for a tax inspection
- A look back at 2012 for IT contractors
- Equity release: don't leave retirement funds down to luck
- 5 financial resolutions to make for 2013
- Don't suffer in silence – get help for your debt problems
- How equity release can help cover the costs of social and healthcare
- How to find out more about equity release schemes
- What can you spend your money on after releasing equity?
See more Companies Directory articles
Newsletter sign up