The number of pensioners using equity release as a means of debt consolidation indicates a worrying trend of unsecured borrowing among the older generation.Latest figures from the Institute of Public Policy Research show that almost a million pensioners with more than 100,000 of housing wealth are on means-tested benefits and half of retired people live on less than 128 a week despite having three or four spare rooms in their homes. And last year research from Retirement Plus revealed 20% of equity release customers used their lifetime mortgage to consolidate their debts. Mike Davis, compliance director at BDS, says: “An alarming number of those over 65 are looking at lifetime mortgages as a form of debt consolidation, and feedback from the Financial Services Authority shows it is concerned that there is insufficient evidence that debt counselling is taking place to an appropriate extent.” Stuart Wilson, managing director of the Equity Release Advisory Service, says there is nothing wrong with people using equity release to consolidate debts as long as they realise they are turning a short-term debt into a long-term one. But he adds: “The number of pensioners with debt is alarming and suggests lenders and credit card firms see pensioners as good hunting ground. People over 60 need money for their lifestyle and if equity release was promoted better there would be less need for them to turn to unsecured lending.” Wilson also believes there could be problems with the next generation of pensioners, many of whom may not have paid off their mortgages or have been let down by endowment policies.
- Top trends
- Top trends
Retirement Plus has appointed Graham Bignell as senior relationship manager for the South-East. Bignell has 29 years experience in the mortgage industry and, until recently, worked for Standard Life.
Blemain Finance has participated in the c2-Financial weekly web news cast, which is now live. In the video, Marc Goldberg, director, is shown explaining the benefits of secured loans and how, in many cases, they offer more benefits than a full remortgage. Blemain Finance is the secured loans division of Blemain Group, which is now […]
Tax experts are urging offshore account holders to seek professional advice before contacting the Inland Revenue with details of their accounts. Over three million UK taxpayers have offshore accounts which until now have paid interest with no tax deducted.
A free online worldwide service that allows home owners to sell or rent their property without an estate agent was launched last week. Called Eureka247.com, property owners can upload details and photographs of their rental or sale property onto the website. Those search- ing for property can then select various criteria to receive details of […]
By Mark Martin, manager of the Neptune UK Mid Cap Fund, and Scott MacLennan, manager of the Neptune UK Opportunities Fund H1 2014• Equity markets continued to show strength: despite a strong rally in 2013 driven by a market-wide re-rating, equity markets continued to generate positive returns for investors. Economic activity continued to be stimulated […]
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