Equity release 'should not be taken lightly'
7th Aug 2012
People considering equity release have been advised that the decision is not one that can be taken lightly, and must be explored fully before committing.
Andrea Rozario, director general of the Equity Release Council, said that for most over-55s, their home is their largest asset, so the main benefit of equity release is that it allows people to access the wealth tied up in their property while remaining in their homes.
It comes after Key Retirement Solutions reported that the equity release market saw extremely strong sustained growth year-on-year both for plan numbers and for overall lending.
Sales of plans during the first half of 2012 were 9,288 - an increase of 10.74 per cent over the same period of 2011 – while lending also increased to £446.2 million from £385.7 million for the same period of 2011, a rise of 15.69 per cent.
Ms Rozario said people might use the cash for a variety of reasons, from improving their standard of living to home improvements to debt repayment to simply paying for a holiday of a lifetime.
However, they should do some independent research so they feel comfortable with the process and can then speak to an advisor who will answer any questions they may have, the expert advised.
"Advisors are incredibly important when it comes to equity release as not only will they help the consumer to decide if equity release is right for them, but also make sure that they are getting the benefits they are entitled to," she added.
Posted by Staff Writer: Ewan Robertson
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