Equity Release Used To Pay Off Debt

The University of Birmingham has revealed that many older people are releasing equity from their property investment to pay off debt.

The ‘Housing and Finance in Later Life’ report shows that over a third of property owners have used cash generated this way to clear debts.  Another 50% have used it for house maintenance.

Additionally, 25% surveyed used this equity for large one-off purchases and 75% used it as cash to assist with financial security.

Very few appear to be happy with the results:

•    Under 50% felt ‘very satisfied’
•    79% were happy with the advice they received
•    Only 66% were happy with the security of the plan

Age UK, who requested this information, felt more thought should be given to people on low incomes.

Two-thirds of over 65’s are mortgage free; many are on a low income and find it difficult to maintain their homes. 14% are in receipt of pension credit and felt an equity release was the only option..

66% revealed that they didn’t want to move away from their friends and families:

•    Over 50% did not like the upheaval
•    Over 25% felt it was too expensive