For those struggling to stay afloat with their debt consolidation, equity release mortgages could provide an attractive alternative to trading down.
That is according to the Press and Journal, which reports that the financial solution is one that offers the most benefit to those who are asset-rich but income-poor.
Equity release allows are designed to free up tax-free cash from a person's home in order to boost their finances during later life.
The schemes, which are regulated by trade body SHIP, allow customers to stay in their homes for the rest of their lives and should come with guarantees that they will not fall into negative equity - a situation whereby borrowers would otherwise owe their provider more than the value of the home they borrowed against.
Capital is usually received in the form of a monthly income or a lump sum, with the provider recouping its money at a later date - usually following the death of the customer at which time the debt is paid from the estate.
For this reason in particular, equity release is ideally suited to those who do not wish to leave the entirety of their estate to their heirs upon their deaths.
The money can be used for anything from home improvements, holidays and car purchases to clearing debts and mortgages.
For those struggling with debt consolidation at a time when money is tight across the full scale of the economy, equity release could provide a way for homeowners to maintain their lifestyles in later life without moving to a smaller home.
"This type of mortgage is only available to those over 55 as no repayments are made to the loan on a monthly basis, but instead the interest is added to the outstanding balance," the newspaper noted.
"The loan is then repaid when the house is sold once the last of the borrowers either dies or moves into permanent long-term care."
However, it is worth keeping in mind that these type of schemes come with all the usual costs and fees, while changes in the housing market could see providers taking a larger cut of the estate following a borrower's demise than may originally have been intended if interest grows more quickly than property prices.
It is also crucial to ensure that any equity release scheme is properly regulated by SHIP, which was set up to improve the reputation of the industry after it became notorious in the 1980s for leaving borrowers in more debts than the value of their properties - before 'no negative equity guarantees' became included as standard.
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