20/09/2011 10:40:59

Equity release an option for increasing number of people, Ship reports

An increasing number of people are choosing to release equity from their property in order to fund the rise in the cost of living.

That is according to Andrea Rozario, director general at Safe Home Income Plans (Ship), who has suggested that pension pots have been hit by the recession, so people are looking elsewhere to gain money.

She said: "Clearly people are coming round to the opinion that using what is your biggest asset to fund a better standard of living in later life makes perfect sense."

Ms Rozario warned that annuity rates have been severely affected by the economic downturn.

While house prices have dropped slightly, she suggested that overall there has been a "huge increase" in values over the last ten to fifteen years time.

Ship recently suggested that people are increasingly using equity release to help their children buy their first home and get onto the property ladder.