Money News
Research from the Newcastle Building Society Equity Release Service reveals that nearly one in four people (24%) wouldn't know where to turn to for advice about equity release; even though 45% see it as a possible option for them.
Equity release is being seen as a viable option for meeting routine living costs in later years. Rather than splashing out on luxury purchases, most surveyed would use the money to improve the quality of their everyday life (59%). Other reasons cited included: Travelling / holidays; Home improvements; to reduce an IHT bill and paying off bills/other debts.
Of those who aren't considering equity release, most felt it was because they didn't need the money, or had other sources of finance (24%). Meanwhile, 21% would rather downsize their property to generate more cash. A lower number were either concerned about the debt incurred (17%), or reluctant to reduce their child's inheritance (14%).
Bob Mottershead of Newcastle Building Society's Equity Release Service makes the point that equity release has been the subject of a lot of bad press, but that with almost half of people seeing it as a possibility, indicates it is becoming a mainstream option.
"It is clear that the work that has been done to regulate and re-educate on equity release is beginning to bear fruit. Add to this falling interest rates on equity release products and flexible options and the market is certainly set to grow.
"However, seeking advice and getting a personalised illustration before committing to an equity release product is absolutely essential, so it's quite concerning to see from the research that so many people don't know where to go for guidance. Equity release isn't right for everyone so our advice is to speak to a regulated consultant," he adds.
03 January 2008 © Moneyextra.com
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