More older people will turn to equity release schemes as a way of funding care services in the home, it has been predicted.
Alex Edmans, a business development manager at Saga Equity Release, said that such agreements can offer a “successful” method for people to afford care costs and stay in their own houses.
She noted that as pension funds are expected to be reduced in the future -particularly in light of the recession – releasing money from the value of a property can help homeowners to achieve “financial security” in their retirement.
“Over the coming years I expect to see more and more people who require care but wish to remain in their own homes consider using equity release,” she remarked.
It comes after figures from the Resolution Foundation revealed that UK adults aged over 65 have around £500 billion of unmortgaged equity tied up in their properties.
By Jamie Price