Failure to consider equity release is "ridiculous"

Wednesday, April 21st 2010

Equity release may not suit all retirees, but ignoring it completely is "ridiculous", it has been claimed.

Andrea Rozario, director general at Safe Home Income Plans, explains more people are considering this option when planning for their retirement.

Her comments follow findings from Bridgewater Equity Release showing 30 per cent of customers planned to put released equity towards mortgage repayments.

And 17 per cent would be using the funds to make home improvements - an increase on previous figures.

Ms Rozario stated it was "worrying" that some were looking to equity to consolidate debt, with 15 per cent of customers reported to be doing so.

However, for many people it makes sense to use what is often their largest asset to help fund retirement.

"It seems ridiculous not to take it into consideration along with all of your other options," she claimed.

Ms Rozario observed a report from Key Retirement Solutions showed some people are also using the money to treat their family or help them to buy a home, according to a report.