1 in 10 retirees use equity release to clear debts

A new piece of research conducted by Saga Equity Release found that 40 per cent of people over 55 years-old have used equity release schemes to pay off their loans. Another 31 per cent used this alternative source of funds to re-mortgage their properties.

Equity release is also used by people above the age of 60 to fund a comfortable retirement. Fifty two per cent of over-60s use these schemes for home improvements projects, while 34 per cent use it to pay for a dream holiday they have planned for all their lives. Twenty per cent of retirees also use money from equity release schemes to gift family members.

Andrew Goodsell, executive chairman, Saga Group, said: "This study dispels the concept that equity release is the last resort for those who have nowhere else to turn. We have found that people are increasingly likely to use equity release to clear debts, enabling them a better quality of life in retirement."

Ashall Glover Financial Services are equity release specialists

Posted by Louise Tilston