Equity release is becoming increasingly popular. Safe Home Income Plans recently reported equity release business by its members rose by 14% to £275 million in the second quarter of 2008.We are hearing more and more that pensioners and those approaching pensionable age are going to face poverty because they have not provided enough for their retirement. As a result I think equity release is going to be something we hear more and more about and the credit crunch had boosted the appeal of equity release products. At the moment a lot of equity release rates are better than mortgage rates.
A lot of people are very asset rich but cash poor and people have often got hundreds of thousands of pounds tied up in property but a very low pension equity release could be used not only to fund retirement but also to pay off other debts such as credit cards and mortgage repayments, and even to finance holidays.
It is however a specialist area of business requiring specialist and carefully thought out advice. We advise clients to take time and fully consider all options before rushing in to an equity release arrangement. That said when it does fit the bill and all aspects are fully considered it can prove worthwhile and offer clients options they perhaps had not considered previously.
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