Equity release opportunities may arise from mortgage overpayment trend

Many homeowners have been making overpayments on their mortgages in recent months, it is claimed, which may mean that they will be in a good position to benefit from home equity release schemes in the future.

One in five people (21 per cent) who are making overpayments have been looking to take advantage of the low interest rate environment, according to research from the Co-operative Bank Mortgages.

The survey revealed that 13 per cent of people said they were making overpayments as a result of reductions in their mortgage interest rate.

Meanwhile, an industry organisation has stated that equity release can play a beneficial role in generating funds for consumers, especially those who face a pensions shortfall.

Andrea Rozario, director general of SHIP, the equity release trade body, has called for the "further development and expansion of the equity release industry in the UK".

Commenting that thousands of pensioners are living on less than £750 per month, she added: "These people could potentially benefit from taking out an equity release product and we urge them to speak to an adviser."

Ashall Glover Financial Services are equity release specialists