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Equity release used to pay off debts

1/16/2012

Indebted individuals have increasingly been turning to equity release in order to pay off their debts.

According to Andrea Rozario, Director General of Safe Home Income Plans (SHIP), homeowners used to use equity release for home improvements or retirement, but in recent years this has changed as a growing number of people utilise equity release to pay off debts.

She said: β€œIt could be they had an interest-only mortgage previously – with the view of selling and paying off that mortgage at a time when they came to retirement. But, they may find that they no longer wish to do that and they find they have another option – which is to take out equity release.”

The popularity of equity release to help relieve financial pressure on debts may only be set to rise as the industry braces itself for another difficult year ahead in 2012.

Categories; Current UK Economy, Housing Debt and Bills, Budgeting Advice,