Tuesday 14th of April 2009
Equity release is an important tool for older people who need to supplement their income in retirement, it has been noted.
According to Emma Soames, editor-at-large of Saga magazine, obtaining finance in this way could hep people who need to obtain money without having to sell their home.
However, those who find that they are unable to do so and have built up a significant amount of debt may wish to seek IVA advice in order to identify non-borrowing solutions.
And Ms Soames noted that there are some problems with seeking equity release, stating: "Of course at the end of the day, it means you leave less to your children than you would have done if the house was still 100 per cent yours."
Recent statistics from uSwitch revealed that falling property prices could be causing a problem for those planning to rely on equity release - something that could increase demand for IVA help.
The price comparison site found that 1.7 million pensioners intend to use their property for funding, but have seen £46 billion wiped off values over the course of the last year.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Overdraft charges rising, but IVA advice may help
