Monday 16th of March 2009
Homeowners considering equity release have been urged to assess other options before doing so.
Age Concern has warned that such a move is a "major commitment" and suggested that all alternatives be investigated before a decision is made.
Director general of the charity Gordon Lishman explained that older people may look to equity release in order to raise extra money.
However, this solution could lead to cash-flow problems and the need to enter into an individual voluntary arrangement.
And Mr Lishman remarked: "We would urge anyone considering equity release as an option to check they are receiving all the benefits they are entitled to," adding that advice should be sought in order to fully examine other options.
A recent Norwich Union study revealed that the typical value of a home being used for equity release dropped from £40,000 above the national average in 1999 to £22,000 more than the average last year.
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