Equity release 'could offset rising living costs'

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Equity release 'could offset rising living costs'

Wed 16th Nov 2011

UK homeowners have been advised that rising living costs could be offset if individuals decided to carry out an equity release deal on their property.

Paul Rumbold, an independent financial adviser at Wayne Austin IFA, said this is perhaps more of an option for older individuals as they may not have low-interest mortgages.

However, what older people do tend to have is more equity in their home, meaning this is an untapped resource they could use to their advantage in the present financial climate.

He commented: "It is always something that is there if they are cash-poor and equity-rich. Then they can alleviate that situation by releasing money."

According to figures provided by research from price comparison firm Moneysupermarket.com, people across the UK are having to deal with an inflation rate of five per cent at present and this has resulted in people spending on average 27 per cent of their monthly income on essentials, like food and bills.

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