Equity release firm finds pensioners own £760bn mortgage free property

Posted 29/08/2012

Pensioners in Britain own £760 billion worth of property that is mortgage-free, according to data released by an equity release company.Key Retirement Solutions found this figure has risen by £13.66billion in the past three months, with Dean Mirfin, director at Key Retirement Solutions, stating on average pensioners have seen gains of £2,956 in their equity.”That masks big differences with pensioners in London, Scotland and Wales seeing major gains while other regions are standing still or seeing losses,” he said.Pensioners are said by Mr Mirfin to be increasingly seeking drawdown products, which means the equity release market is seeing strong growth in the number of plans sold.Mr Mirfin explained among the benefits of equity release plans are lower borrowing costs, which he noted allows for increased flexibility for homeowners to access further funds over time as and when they are required.Director-general of the Equity Release Council Andrea Rozario recently called for the government to release more details about social care provision as soon as possible.