Equity release ‘can help those struggling with debt’

Posted 13/01/2010

Equity release schemes can be a potentially beneficial source of income for those struggling to manage their debt repayments.

This is the advice of Key Retirement Solutions, which suggested that more and more consumers will be looking to release equity in 2010 in order to clear their debts during the recession.

The advice comes in response to the body’s 2009 Market Monitor, which showed that the proportion of equity release customers using the money to pay off non-mortgage debts has risen from 11 per cent in 2008 to 35 per cent this year.

Dean Mirfin, Key Retirement Solutions group director, said this was because the option is becoming more attractive due to limited interest rates on savings.

He added that rising property values will also “add to the attractiveness of releasing the wealth tied up in our homes to better our standard of living”.

Last month, Equity Release Solicitors’ Alliance chairwoman Claire Barker recommended that those looking to release equity take legal advice first, as this will help consumers to make the right choice for them.