Equity Release Loans Being Used By Redundant Over 50’s
Equity release loans are becoming a popular and major part of many people’s retirement plans. They allow home owners to take out an equity loan on their property to help with their retirement income, without having to make any repayments, as the loan is cleared in full once the property is eventually sold.
But a new report from equity release loan specialist, Key Retirement Solutions, has found that a growing number of people are taking out equity release loans in their 50’s, in order to replace their income which has been lost through redundancy.
Usually, someone in their 50’s should be in the position where they are clearing their outstanding debts on things like personal loans and credit cards and building up their savings and pension pot in readiness for their retirement.
But with job losses on the increase in the UK at the moment, many over 50’s are losing their main income and not being able to find another job, during these crucial retirement planning years, thereby forcing them to resort to equity release loans to pay off their existing loan debts and supplement their income.
Whilst this can be a lifeline for many people who find themselves in this situation, taking an equity release loan in their 50’s means that the overall debt is accruing for longer and the option of taking out such a loan once they have eventually retired is either no longer available, or severely restricted.
Dean Mirfin of Key Retirement Solutions said “People in their 50’s should ideally be gearing up for the final push on securing their finances in retirement. However, we have seen a growing trend in customers of younger ages applying for equity release loans in order to supplement incomes at a time when many can ill afford any drop in income, let alone the dramatic effects of redundancy.”
