Age UK unveils new equity release service

Age UK Enterprises has launched a new equity release advice service in association with Just Retirement Solutions (JRS) that allows regular drawdowns as low as £500.

According to the company, two thirds of people aged 60 and over own their homes outright. However, of these, 34% rely on a state pension as their main source of income rather than releasing some of the equity in their homes.

Age UK believes equity release can help make retirement more comfortable, but its research shows that 91% of homeowners aged 60 and over would not even consider the option.

The company new Equity Release Advice Service has been designed so that customers can take out sums as small as £500 through a flexible cash plan, so the bulk of the property’s value can be left intact.

As part of the service, a state benefits assessment is provided to make sure that customers are receiving all the benefits they are entitled to before they consider equity release.

Gordon Morris, managing director of Age UK Enterprises, said: “Many people reach retirement and realise that the state pension will not provide the comfortable lifestyle that they had hoped for.

“During their working lives, they will have worked hard to pay off a mortgage and it may be that when they retire, their home can be used to supplement a meagre pension.

“We have specifically developed the Age UK Equity Release Advice Service based on our in-depth understanding of the needs of those in later life.

“We know that just over a quarter of these homeowners who would not consider releasing income from their home are not opting for equity release because they wish to leave their home to their family.

“We designed the Age UK Equity Release Advice Service to ensure customers are able to pass on some of the value of their home to family if they wish.”