Figures released by Norwich Union have found that equity release business (where people are releasing some or all of the value from their homes, has soared by more than 89% of last years figures.
Our view
Equity release, provided you have been recommended the right scheme, can be a good thing. It is our opinion that there is little or no point having significant assets when you are older, hoping to pass them on when you die to friends or relatives, given the Community Care Act and care fees position.
In simple terms, if you have or own assets above the value of £19,500 and you need some form of care, the Local Authority has the power to take ownership of your home to pay for that care! For those who have not bothered or have not been able to save or buy a home, they may get their care paid for by the local authority with a reduced state pension.
The current system penalises those who have made their own wealth, all be it , sometimes a smaller pot.
Spend it and enjoy it we say!
Learn more about Equity release in Mortgage Crazy.com.
Learn more about care and losing your home in the Care Fees Adviser.com.
Download our free fact sheets on long term care and equity release in the registered iusers area.
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