Which?: Equity release should be a last resort for the elderly

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Which?: Equity release should be a last resort for the elderly

Mon 22nd Sep 2008

Elderly people struggling financially should consider equity release only as a last resort, Which? has said.

The consumer watchdog said that equity release schemes can be very costly and inflexible, leaving people with little or no equity left in their homes.

This can restrict their options at a later point.

In addition, the release of money can affect the amount of means-tested benefits a person can claim.

Philip Spiers, co-author of Care Options in Retirement, said that equity release schemes bring in income while letting a person stay in their home.

But he added that is circumstances change, a person may not have enough money left to afford alternative accommodation.

Anyone considering it should always take independent financial advice first.

Earlier this month, Age Concern criticised the government's energy help package.

It called for an urgent revision of the measures and said the Warm Front programme needed its funding to be increased by at least 25 per cent.

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