Equity release 'a logical option for retirees'

Posted: 21 Apr 2010 10:16:36 GMT

Equity release may be a logical option for those who are soon to be retired, one expert has suggested.

Andrea Rozario, director general at Safe Home Income Plans, says: "If you are planning your retirement and you need to consider what assets you've got, then it makes total sense to take into account your largest asset."

She states that while this may not be right for everybody, it is "ridiculous" not to take housing equity release into consideration.

Ms Rozario's comments come as new statistics from Bridgewater Equity Release reveal 30 per cent of all customers in 2009 planned to repay their mortgage with the use of released equity.

Meanwhile, 17 per cent planned to use the equity to make improvements to their existing home.

According to Key Retirement Solutions, up to £216.9 million of housing wealth was released through equity schemes in the first quarter of 2010. This is in comparison to the £183.1 million that was issued in the same period in 2009.

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