Equity release body welcomes Labour's social care plans

A trade body for the equity release sector has welcomed the current government's plans in regard to social care for the elderly.

Andrea Rozario, director general of Safe Home Income Plans (SHIP), said an ageing population and failing pensions means that this issue needs to be addressed "urgently".

"By limiting the number of years that the elderly will have to pay for residential care to just two, the suggestions in the white paper may be a step towards combating this problem," she commented.

Ms Rozario also took the opportunity to point out that equity release can widen the range of choices open to an individual.

She stated that, most important of all, equity release enables elderly people to remain in their own home at a particular time in their life when they need to feel safe and reassured.

Meanwhile, Lloyds Banking Group customers who are hoping to benefit from equity release schemes in future were boosted last month by the bank's announcement that those with variable rate mortgages can overpay by up to 20 per cent without any financial penalty – doubling the previous limit.

Ashall Glover Financial Services are equity release specialists