Responsible Life have revealed that nearly 40% of equity release customers are unlocking wealth from their properties to clear debts.
The data shows that among their own customers, 40% used equity release this year to clear an existing mortgage, and/or to consolidate unsecured debts. The findings follow research earlier this year which found that a quarter of those planning to retire this year expect to do so in debt.
Many already in or entering retirement find either their mortgage repayment is now a far greater proportion of their retirement income or unexpectedly finding that their mortgage lender is asking for repayment of their mortgage loan.
Some may be able to rebroke to a conventional mortgage, but for others this is not a path they are able to follow, and another solution is required.
Equity Release is not for everyone, however it’s a great solution for some, allowing customers to rebroke and either make no payments and allow the interest to roll up or they can make a regular monthly payment from as little as £25pm or an alternative plan simply allows them to make an ad-hoc payment of up to 10% of the capital balance of their loan once a year.
The right option for the customer begins with a no obligation visit from one of our national team of advisers. To find out more and refer a client – -www.responsiblelife.co.uk/pms