David Blunkett: Equity release can assist older people

Posted 05/02/2010

Equity release can be a potentially useful source of income to those struggling with financial difficulties later in life, according to MP David Blunkett.

The former secretary of state for work and pensions said at a Safe Home Income Plans (Ship) event that releasing equity can represent a potential answer to the pensions shortfall facing many UK retirees.

He highlighted the fact that housing equity in Britain is currently valued at £700 billion, of which a “substantial” amount could be freed up through the use of equity release products.

Mr Blunkett added: “It obviously has a future in helping to deal with the most enormous challenges facing us as we age.”

Last month, trade body Ship stated that equity release can provide a useful option to those looking to pay off debts in their old age without needing to sell their homes.

Andrea Rozario, director general of Ship, said this was particularly applicable to those who are rich in assets but have a limited flow of cash.