Trend to pay off debt with equity release income
Share
Dean Mirfin, Various uses for this money
The proportion of home owners who use equity release as a way of paying off debt shot up to 35% last year from 11% in 2008.
Latest market figures from Key Retirement Solutions show that the practice of using equity release to pay off debts such as loans and credit cards jumped 24% over the course of last year.
Dean Mirfin, group director at KRS, says: “The uses of equity release continue to be widespread but the considerable increase in the use of these funds to repay debt is a notable trend.”
But the data also shows that the number of owners using an equity release plan to clear their outstanding mortgage repayments declined last year, going from 22% in 2008 to 20% in 2009.
