People considering equity release may benefit from acting sooner rather than later, according to equity release provider Home & Capital.
Home & Capital says the fallout from the sub-prime mortgage crisis could reduce house prices so people considering equity release should try to benefit from equity release before the market drops.
Nigel Hare-Scott, sales director of Home & Capital, says: “Pensions or investments predominantly linked to the stock market will have seen their value fall as the FTSE and other world stock markets have nose-dived, and with interest rates now looking less likely to rise again, cash rich people who live off their savings income cannot bank on further rises in their interest income.”
He says the elderly could “supplement their pension or raise money to improve their lifestyle in retirement. They should consult a financial adviser who will guide them through their various options, including downsizing, a lifetime mortgage or a home reversion plan.
“It was also reported recently that personal debt, at £1.35trn, now exceeds GDP – and in many cases the over 55 age bracket has substantial borrowings. Equity release can enable them to consolidate existing borrowings.”
Earlier this month a survey from Fool.co.uk showed seven million people will use equity release when they retire.
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