Equity Release Could Help Pensioners Feeling the Squeeze
Recent reports have suggested that with inflation soaring sky-high and rates on savings being low, many pensioners are feeling the squeeze. However, while cash may be in short supply many pensioners are sitting in a gold mine when it comes to equity release in their homes. Reports have suggested that around £765 billion could be tied up in property.
Worry as Pension Schemes Face Radical Changes
Plans unveiled recently could mean that millions of individuals may be faced with having to pay more into pension schemes and have to work longer until they are able to draw on their pensions. This could mean that homeowners over 55 years old may need to look into equity release schemes for to supplement their pension incomes.
Equity Release Schemes Could help Fund Care Fees
A report is being commissioned which will recommend an overhaul of the care funding system. It is thought that in it there will be suggestions of homeowners turning to equity release schemes and using this money towards the spiralling costs of care.
House Price Uncertainty Driving Homeowners Towards Equity Release
With there being uncertainly with regards to when the housing market will pick up, many homeowners around the age of 55 could consider an equity release schemes to guarantee that they are able to leave their children an inheritance.
Last Twelve Months Tough for Over-55s
The past twelve months have been tough for over-55s as shrinking salaries have failed to compensate for the increased cost of living and contributed to a rise in the average mortgage debt.
Debt Is a Growing Problem for Over-55s
According to Aviva’s fifth Real Retirement Report, 23% of over-55s don’t expect to be free of debt until they are about 75-years-old and 15% feel they won’t ever be able to pay back what they owe.
House Prices Roughly the Same as a Year Ago
The up and down nature of house prices in recent months is showing signs of stabilising after the Nationwide reported a 0.3% increase in the average price of a UK house during February 2011.
Encouraging Forecast in 2011 for Equity Release
Despite fluctuating house prices and greater calls for better coverage from the Government, 2010 wasn’t a bad year for the equity release market and the forecast for 2011 looks positive too.
Pension Deficit Shows a £68 Billion Shortfall
Research suggests that the pension deficit today remains as high now as it was six years ago, despite an additional £50 billion investment by UK companies. This could encourage some homeowners to consider an equity release scheme.
Report Reveals 40% of Home Reversion Schemes Used to Repay Mortgage
This month, a study investigating why customers choose home reversion schemes and how they choose to use their extra cash, revealed more than 40 percent use it to repay an existing mortgage.
