Equity release to counter BP slump

Posted in Equity Release Property News

3rd June 2010

The millions of gallons of crude oil sweeping across the Gulf of Mexico may have implications over here, which may lead to millions of homeowners looking into equity release schemes.

As BP seeks for ways to stem the flow of oil, its share price is crashing which could have severe implications on the UK pensions market.

BP supplies about one pound in every six of share dividends paid into UK pension funds.

Whilst the firm has pledged to maintain payouts for now, despite its massive costs and fall in value due to the oil slick, the long term picture isn’t as rosy.

As a result, more people may well have to look at getting a home reversion plan or a lifetime mortgage to give them a steady extra income during their retirement.

Whilst equity release can’t supply enough to replace a pension, it can certainly lessen the financial blow.

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