Pensioners turn to Equity Release to pay off debts

Integrating housing wealth into long-term financial planning can help solve the problem of a lack of lending to people who are in retirement, Ivan Lyons, Director of Investment Solutions has said.

Lyons stated that ‘many people who had been cut out of the mortgage market, for example those unable to remortgage to pay down other debt, have been able to use equity release’.

He said: ’People who have been cut out of the mortgage market have been able to use equity release to pay off their outstanding debt. Meanwhile, flexible new products mean customers can make repayments to reduce any debt roll up. While it gets harder for people to obtain mortgages as they age, the opposite is true of equity release. The older you are, the more money you can take and the cheaper rates you can access. Integrating releasing housing wealth into long-term financial planning has many advantages and can help solve this growing burden’.

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