Equity Release Schemes Could Help Homeowners Pay the Mortgage
An equity release scheme could help homeowners relying on credit cards to pay the mortgage, ease the burden of debt. This is in light of a survey produced by UK housing charity, Shelter, which showed that up to one million households had borrowed money on a credit card to pay the mortgage or rent.
The survey was conducted by YouGov and questioned 2,022 people, 6% of whom admitted using a credit card to make mortgage repayments or pay the rent in the last 12 months. This percentage suggests that up to one million homes in the UK are using this method of payment.
Equity Release Schemes Can Ease the Burden of Debt
It has led Shelter to issue a warning that these homes face problems if their debt is mounting. They have urged people to seek advice urgently.
Kay Boycott, Shelter’s director of policy and campaigns said: ‘This is a shocking discovery, that over a million households in Britain are in such desperate circumstances that they need to borrow money on credit cards to pay for basic housing costs.”
The survey showed that the working class were the most likely to rely on credit cards to pay the mortgage or rent (8% answered yes to the question) but the middle to upper classes weren’t exempt, 4% of those questioned admitted to using a credit card to pay the rent or mortgage in the last 12 months.
Unlock Some of the Value in Your Home with an Equity Release Scheme
For homeowners an equity release scheme could help pay off some debt as well as the mortgage, leaving you free from the burden of having to make regular monthly repayments.
An equity release scheme has the potential to unlock a tax-free lump sum or regular payments from the value of your home. Paying the mortgage is one of the most common reasons cited by customers who take out an equity release scheme.
By consolidating your existing unsecured debts, you may extend the term and overall cost of these debts.
For no-obligation advice on whether equity release could help you and information on the best plans please call our 24 hour helpline and speak to one of our advisors:
Or use the comments box below to ask a question.
Equity Release may involve a Lifetime Mortgage or Home Reversion Plan. To understand the features and risks ask for a personalised illustration.
Age Partnership provides initial advice at no cost and without obligation. Only if you choose to proceed and your equity release case completes would a typical fee of 1.5% of the amount released or £795 be payable.
Important things to consider about equity release:
- Equity release could affect your current or future entitlement to means-tested benefits
- Releasing equity to spend in your lifetime can reduce the amount that is left in your estate when you pass away
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