Equity release hope if bill fails

Homeowners should remember that equity release plans are available to them if an amendment to the Finance Bill is rejected tonight.

The alteration would exempt charities from the 20 per cent rate of VAT for non-business activities.

If the change isn't made, it could cost charities nearly £150m (£143m), which would mean there would be less to spend on those who need the money.

The amendment would also prevent the government from bringing in the rise until they have come up with a way to reimburse older people for the cost of the rise.

Labour have said that they will oppose the rise "all the way", but in case their efforts fall short, homeowners could get an equity release scheme to make up the VAT difference.

A drawdown lifetime mortgage could release equity from your home as a steady stream to help provide an extra income.

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