Equity release not a last resort for retirees

Equity release in the form of a homeowner loan is no longer a last resort for people in financial difficulty, it has been suggested.

The claim was made by Intune, a subsidiary of Help the Aged, which said that homeowner loans can be useful for people that are “asset-rich but cash-poor”.

Glen Osgood, partnership manager for Intune Group, said lots of people “are using equity release to fund a similar or better lifestyle through their retirement”.

Many of these are not in financial difficulties, they just “want to do something nice in life”, he added.

Equity release allows a homeowner to cash in on the difference between their mortgage and the value of their home.

Statistics suggest it is used mostly by older homeowners with little or nothing left to pay on their original mortgage.

© Adfero Ltd

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