Equity release ‘should be considered by retirees’

Posted 20/04/2010

Anyone approaching retirement should consider the benefits of equity release, according to Safe Home Income Plans (Ship).

The industry body for the equity release sector made the suggestion after a study by Key Retirement Solutions revealed the market for such financial products is growing.

Its research concluded the value of equity released from property via specialist equity release schemes climbed from £183.1 million in the opening quarter of 2009 to £216.9 million during the first three months of 2010.

Ship’s director general Andrea Rozario said more people now regard equity release as a “logical option” when planning for retirement, as it makes sense for them to consider how their most valuable asset can be best used.

She added: “We have always maintained that equity release is not right for everybody, but it seems ridiculous not to take it into consideration along with all of your other options.”

Another recent market study by Bridgewater Equity Release found that the most popular reason for people to use such financial products is to repay their mortgage.

Thirty per cent of people using equity release plans do so for that reason, compared with just 6.5 per cent who use them to help fund their retirement.