Equity release pilot scheme launches
Share
Three local councils are to run an equity release pilot scheme provided by Just Retirement that will allow home owners to release small amounts of cash from their home.
The Home Cash Plan pilots, launched in association with the Joseph Rowntree Foundation, will be run by local authorities the London Borough of Islington, the Royal Borough of Kensington and Chelsea, and Maidstone Borough Council.
The pilots will run until summer 2011, with each one reviewed by the Joseph Rowntree Foundation.
Just Retirement says it predicts that the sums being released will be smaller than typical average equity release mortgage advances.
The provider says that the relative size of the advance should allow home-owners to withdraw equity from their homes without compromising their entitlement to pension credit.
A final report on the schemes will be produced in July 2011.
“There are a great many asset-rich but cash-poor pensioners in the UK who could really benefit from this type of product.”
Andrea Rozario, director-general of SHIP
Roger Pangbourne, head of compliance at Just Retirement Solutions, says: “The pilots will allow those who have been historically disenfranchised from the fully regulated equity release market to access advice and a product designed for their needs.
“Just Retirement is delighted to be part of this innovative scheme and looks forward to a successful outcome for the pilots next year.”
Julia Unwin, chief executive of the Joseph Rowntree Foundation, says: “Our previous research has shown that most, older home owners would prefer to be supported to stay at home rather than move into a care home.
“These pilots will hopefully demonstrate that there are a wide number of options available, which are still to be explored, but could prove effective.”
Safe Home Income Plans, the equity release trade body, helped to design the pilot schemes.
Andrea Rozario, director-general of SHIP, says: “There are a great many asset-rich but cash-poor pensioners in the UK who could really benefit from this type of product and we fully support these organisations in their steps to fill this real and growing need in the market.”
