Friday 1st of May 2009
Homeowners are increasingly turning to equity release as a way to combat problems created by the economic climate, it has been observed.
Safe Home Income Plans (Ship) revealed that the average amount being released in the first quarter of this year was 16 per cent higher than at the same time in 2008.
However, lending restrictions could mean that those hoping to turn to this form of funding are unable to secure finance.
In such instances non-borrowing solutions such as individual voluntary arrangements may be the best option and IVA advice is available to help debtors identify if they are eligible.
Andrea Rozario, director general of Ship, noted that there is a "clear need" for equity release products, adding: "It is encouraging to see how resilient the equity release market is, especially when you consider the fact that consumers have become increasingly cautious about borrowing."
The body recently called for action to ensure a greater proportion of the equity being held by Britons can be released.
- 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
- IVA information could help with credit card debts
