Equity release schemes are more than just a last resort for people wishing to finance their retirement, a regulator has claimed.
Safe Home Income Plans (Ship) – the trade body that oversees equity release – has reacted to a report from consumer charity Which? claiming that such schemes should only be used when people have no other option.
Ship has stated this view is outdated and that the criticism did not take into account several advancements that have been made over the past ten years.
Director general Andrea Rozario remarked: “Equity Release is most definitely not an option of last resort … it offers a guarantee that older people can stay in the homes they know and love, with no monthly rent.”
Meanwhile, research from Newcastle Building Society has revealed that 47 per cent of respondents would rely on savings to fund the costs of old age but only nine per cent had considered releasing money through their homes.
By Jamie Price