Could bankruptcy in the north-east prompt home income plans uptake?

Home equity release schemes could be boosted as the risk of bankruptcy in the north-east increases.

People living in the north-east have run a 69.5 per cent higher tendency of declaring insolvency in comparison to those living in London, claimed a new study.

In the north-eastern region, 29 people went bankrupt for every ten-thousand people. In contrast, there were only 17.1 new cases of insolvency reported for every ten-thousand people.

The figure is lower than the average in England which is 24.3 cases for every ten-thousand persons, according to the recent research conducted by R3.

Steven Law, president of R3, said: "Prior to the recession, the north-east had a higher than average unemployment rate and the region's construction industry was badly hit during the economic downturn so it is understandable that personal insolvencies are more common there."

He pointed out that the proposed cuts in public sector spending are likely to worsen figures, especially for the north-east, where public sector employment is relatively high.

A recent research by Saga Equity Release revealed that 40 per cent of over 55s used equity release to repay their loans.

Ashall Glover Financial Services home income plan advisers

Posted by Partick Ashall