Equity release ‘can help older people stay in their homes’

Posted 28/01/2010

Use of equity release products can prove to be a useful solution for older people wishing to free up retirement finances without having to sell their homes, according to an expert.

Andrea Rozario, director general of equity release trade body Safe Home Income Plans (Ship), has suggested that releasing equity has become an increasingly “vital” part of older people’s finances.

She stated that many older people who are struggling with a lack of cash could look to use the finance option to capitalise on the value of their property instead.

Ms Rozario said: “There are a great many asset rich but cash poor pensioners in the UK who could really benefit from this type of product.”

The expert also added that this would allow older people to improve their quality of life during retirement while still enjoying the benefits of remaining in their homes.

Last week, debt charity Consumer Credit Counselling Service stated that equity release can “transform” the lives of many older people who would otherwise be burdened by debts because of the recession.