Equity release mortgages 'are becoming more popular'
Published On 15 November 2007
More and more people who are approaching the age of retirement are considering using an equity release mortgage to help their finances, a new study has shown.According to Norwich Union, nine per cent of people who are currently of 'pre-retirement' age think they will use equity release mortgages in the future. This compared to five per cent of people who have already retired.
What's more, the lender found that around a third of all the people in the pre-retirement group though that equity release was a sensible option for older people.
"The research shows there is a generational shift between pre-retired and retired people as more people in their 50s and early 60s are considering the product as a way of funding their retirement," explained Willie Mowatt, director of post retirement products at Norwich Union.
"While equity release may not be the answer for everyone, for some individuals it can be a simple, convenient path to a more comfortable retirement.
"It is therefore encouraging that there seems to be a growing acceptance of the product as a viable retirement solution."
A recent study from Birmingham Midshires indicated that people were increasingly looking online for advice about the best mortgage options.
