Equity release ‘is not just a last resort’

Posted 02/12/2009

A finance group has advised older people that equity release need not only be an option considered by those suffering financial hardship.

Saga Personal Finance has conducted a poll revealing that over 60s are now choosing to release equity for a wide range of uses, including for leisure pursuits.

According to Saga’s findings, many people are using the money to make home improvements or go on holiday as well as to clear debts, while others are giving the money to their families.

Alex Edmans of Saga Personal Finance said this should challenge the view that equity release is solely a “last resort for cash strapped pensioners”.

He said: “In fact, people use the capital in their home to enjoy life, not just to get by.”

Last month, Safe Home Income Plans called on the UK’s major political parties to reach a consensus on the promotion of equity release as a potential solution for those facing difficulties affording the cost of long-term care.