Equity Release could be the answer to pensioner debt
New research from Key Retirement Solutions (KRS) reports that the UKs pensioners have a collective debt of £183 billion. For many, equity release could be the answer to their mounting debts and a path to a more comfortable retirement.
Taking out a lifetime mortgage can help the elderly pay off their debts, in fact the money can be used for anything they want – there are no restrictions – whether it is to fund residential care, a holiday, or to even renovate their home. The money would be theirs to do as they wish.
Dean Mirfin, chief executive of KRS, commented, “The over-65s have £500bn in unmortgaged equity tied up in their homes, so for those who wish to remain in their homes, or fund residential care without having to sell their home where the spouse is still resident, equity release provides a very real solution,”.
He went onto say, “Many look at retirement as a period when we should be free of any debt worries and enjoying our retirement incomes to the full. Of great concern is the fact that the 70 and over age group carry the bulk of the debt showing that the problem is evident well into retirement”.
KRS Equity Release Research Findings
Based on the KRS customers who had used an equity release plan in 2008, their data showed that:
• more than 55% of British pensioners have outstanding debts;
• the average mortgage debt amongst pensioners is more than £43,000;
• the average personal loan debt amongst pensioners is in excess of £10,000 each;
• the average pensioners’ credit card debt exceeds £8,000;
• whilst fewer than 3% of pensioners are in the red, those that are have gone overdrawn have done so by an average £5,107;
Free Equity Release advice for pensioners
Find out more information on equity release and see how it may benefit you during your retirement years from the equity release advisors at Age Partnership.
Call our team of experts free of charge on our 24 hour equity release helpline: 08080 27 27 27.
Alternatively Request a Callback and one of our experts will call you.
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