The Government has been told to work with the financial services authority to create an equity release product that is suitable for a wider range of people. In a recent report, the Social Market Foundation has proposed they work together to provide a home-saver product, which would allow people to easily release equity from their home, without having to sell.
They have argued that it is needed as there are more and more asset rich homeowners, who do not want their lives to become drastically different when they retire, or when ill-health stops them working full time.
Our view
Good equity release products are already available, so we see no reason to search for other solutions. If a property is adequate security then it will secure an equity release product.
We believe the Government are unlikely to pursue this anyway as they do not want people releasing equity as it will mean less money to pay for care in old ages.
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