Equity release ‘being used increasingly’

Posted 05/09/2011

Equity release is becoming a popular option among those who do not want to sell their property and have to move house.

This is according to David Penny, managing director and independent financial advisor at Invest Southwest, who pointed out it could be a particularly attractive choice for those who need to raise funds in order to pay care bills.

He explained there are a range of benefits to equity release, adding: “Not having the stress of moving can undoubtedly extend a person’s life. Care in the home can be less expensive than living in a residential home.”

Mr Penny pointed out it can be a “shattering” experience for people to have to pack up their possessions and move away from their house that they may have lived in for many years.

But Paul Rumbold, independent financial adviser at Wayne Austin IFA, warned those considering equity release to speak to a professional beforehand, as it can be a “complex” area.