Equity release used to pay off debts

A third of people with an equity release scheme are using the money they get from it to pay off debts, according to new research.

The figures, compiled by the University of Birmingham for Age UK, also reveal that almost half have put it towards essential house maintenance.

The report also showed that two-thirds of people used equity release, rather than downsizing, as they didn't want to move away from their friends and family, whilst just over half admitted that they didn't want the upheaval of having to move house.

As money gets tighter for everyone, the stats show that this is causing people to release equity sooner on average, with the average age falling from 74 to 72.

Michelle Mitchell from Age UK remarks that "equity release is clearly a very useful tool" but advises people to seek "good quality information and advice" before they enter a scheme.

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