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Government might offer equity release?

Earlier this month a report was launched for debate in the House of Lords calling on the Government to look at delivering its own alternative to equity release.  The report is called “The UK Equity Bank: Towards income security”, and has been put together by Cass Business School and the International Longevity Centre.  It suggests that the Government could come up with a system to exchange an income in retirement for a share in a homeowner’s property.

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It would be a scheme aimed at delivering a simpler and cheaper alternative to other forms of equity release for homeowners aged 75-plus. It would mean that older people would be able to sell part of their home to the government in return for a guaranteed lifetime income. The scheme would initially be focused on those living on their own with small incomes who would be reluctant or perhaps unable to move and downsize.  On death the property would then of course need to be sold, the debt to the state would then be paid and the remainder passed to the person’s estate.

The report estimates that up to 80,000 homeowners might access it, compared to 19,000 that current use other forms of equity release each year.  In February, Pure Retirement became the first equity release loan provider to launch since 2010. If you are looking at ways of making sure you have sufficient funds for your retirement Enable’s Independent Financial Advisors in Bishops Stortford are here to help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.

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