Equity release lending boom

An increasing number of Brits are now reaching the retirement age with uncleared debts on personal loans and credit cards. What is more, many of them still have a mortgage to repay, which is why they are finding it difficult to make the end meet.

In addition, there are people who have also made insufficient retirement plans, mainly because of the fact that they have been fixated on managing their loan repayments. Their financial circumstances got worse due to the scarcity of investment returns on savings and now many of them are left with a lack of money to live on.

This has brought about the resuscitated popularity of equity release loans among retirees who can find no other way to fund their retirement and clear their debts.

A recent study from the equity release loan experts, Bridgewater, has revealed that there is an equity release lending boom on the market now because a growing number of people who are approached their retirement have to repay their loan and credit card debts.

The data has shown that 43% of those who have obtained an equity release loan used it to repay their home owner loan/ mortgage over the course of the previous year, compared to just 30% over the course of 2009.

27% of equity release loans were obtained with the purpose of paying off personal loan and credit card debts last year, which is a rise of 12% on the figures from 2009.
 


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