As the cost of living remains an uphill struggle for many families, a growing number of retired relatives are lending a financial hand by means of equity release plans.
Equity release plans involve lending customers money on the value of their property, in cash and either as monthly instalments or a lump sum. The equity release company will then recover the loan with the sale of the property, either when the customer passes away or if it sold by the customer.
According to research by Key Retirement Solutions, 31% of pensioners used wealth from their property to assist their families during the first half of this year, compared to 23% during the same period in 2011. Sales of equity release plans grew by over 10%.
Helping loved ones from financial hardship is a natural and self-less act; however, assessing one's own finances prior to committing to any major financial agreement, such as equity release, is always a wise move.
Consulting an independent financial and legal adviser will also provide peace of mind for the future.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.