Homeowners Battle Recession by Releasing Equity
As many as a third of equity release customers are releasing some of the value from their homes to pay off debts.
According to new research commissioned by Age UK and carried out by The University of Birmingham, more homeowners are turning to equity release as a means of easing the burden of debt.
“Equity Release Is a Useful Tool”
This has been particularly prevalent in the past 18 months as the UK battles the recession and many retired homeowners seek additional sources of income. With pensions dwindling and the cost of living rising, many of these retired homeowners are beginning to notice the disparity between the two, leaving many struggling.
However, it wasn’t just about clearing debt. Almost a half of the equity release customers asked said that they put the money towards house maintenance.
Michelle Mitchell, Age UK’s charity director, said: “Equity release is clearly a useful tool to ease financial pressures in later life, but anyone considering it as an option should first seek good quality information and advice.”
By consolidating your existing unsecured debts, you may extend the term and overall cost of these debts.
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