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Equity release still very much an option for retirees
29 August 2008 11:00
Property values have fallen over recent months but equity release remains an excellent potential source of income for retirees, according to new figures.
There were 3.77 million over-65s in England and Wales who owned their homes outright in May with a combined £726.43 billion of equity held in them, Prudential's data showed, which was down by one per cent from February but still up by 1.8 per cent year-on-year.
London's retirees were particularly well placed, with 460,000 over-65s in the capital owning their homes outright with a total of £163.17 billion of equity in them, which was actually £439 million higher than the figure for three months' previously.
Prudential's director of lifetime mortgages Keith Haggart stated that retired homeowners have managed to build up a substantial amount of equity in their properties and that, as their costs rise, equity release schemes can help them to improve their standard of living.
Pensioners are particularly susceptible to growing inflation, with recent statistics from Alliance Trust showing that the rate of inflation stood at 5.8 per cent for 65-to-74 year-olds and at 6.3 per cent for over-75s in July, compared to the official rate of 4.4 per cent.
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