Release equity for low compensation

Posted in Equity Release Video News

26th July 2010

Pensioners who lost out following the collapse of Equitable Life may want to release equity from their house after the compensation pot was capped at £500m.

This works out at little over £250 (£266) per person, despite the report by Sir John Chadwick indicating that policyholders had lost up to £3.7bn.

Treasury minister Mark Hoban informed people who had lost money that payments would start in the autumn of next year and that the total compensation would be considered "in the light of what is affordable" following the recession.

Policyholders have understandably reacted poorly to the award, saying it is "an absolute scandal".

For those who have lost out and can't afford to wait for the meagre compensation, an equity release scheme would be a way of giving themselves a more comfortable retirement.

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