Equity release 'is not for a last resort'

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Equity release 'is not for a last resort'

Equity release schemes have been defended by Safe Home Income Plans (SHIP) after Which? advised against them yesterday.

A spokesperson for SHIP, an equity release product provider, said that the consumer watchdog had a "very outdated view" of equity release.

The spokesperson claimed that Which? had not considered market advancements "of the past decade, let alone the last 12 months".

SHIP claimed that, contrary to Which?'s statements, equity release products are flexible and some products available give the security of fixed rates with little or no redemption penalties.

It denied that equity release schemes should be used only as last resorts and instead called them a "logical consideration" for people needing to fund their retirement.

Yesterday, Which? said that equity release should be used only when there is no other option, warning that it could be expensive and inflexible, as well as leaving people with little or no equity in their homes.

It warned that if circumstances change, a homeowner may not have enough money for alternative accommodation and that it could restrict the money available for means-tested benefits.

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