Conditions favourable for equity release

Posted in Equity Release Property News

8th June 2010

An expert has announced that despite confusion caused by the coalition government, conditions are favourable for the continuing strength of the equity release market.

This comes from Claire Barker, the chairman of the Equity Release Solicitors Alliance (ERSA), who also highlights the potential of equity release schemes to counter pension worries.

She believes that a lifetime mortgage or home reversion plan would allow workers to retire at an earlier age than they otherwise may be able to.

Also, with David Cameron's budget cuts affecting the pensions of 20 per cent of the workforce, equity release could soon become "a central pillar of retirement funding".

Once homeowners have checked an equity release calculator to see how much money they could extract from their house, they're more likely to go to a broker to discuss their options.

70 per cent of new equity release cases came through via brokers in the first quarter of the year, compared to less than half (44 per cent) in 2006.

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