Bower Retirement Services: equity release could be the answer

Bower Retirement Services has suggested equity release could be the answer to a dilemma recently discussed in the Daily Mail.

The UK newspaper recently reported that 27% of pensioners are taking their mortgages into retirement. Its survey, which included 3,500 people aged 65 and over, added that those aged 70 and above owed even more on their mortgages.

Those in the 65+ age range were facing an average mortgage of £35,441, while those aged 70 and over owed £52,576. This constitutes an average monthly repayment of £389 on a 15-year mortgage, more or less equalling state pension earnings.

The research also showed that 12 million pensioners in the UK are also faced with average credit card debts of £8,881 at the age of 65 and over, rising to £9,084 at 70 and above.

In response to these findings, Geoff Charles, managing director of Bower Retirement Services, said: “Living through retirement just about being able to pay the mortgage really isn’t what most people had in mind during their working years. What about the holidays? The new car? The kitchen refurbishment? The conservatory? Helping the children out? All the things you ever dreamt of?”

He added: “Paying off a mortgage in retirement could make a considerable difference to the standard of living, freeing up cash and opening up a whole scope of possibilities. Equity release—taking some of the value out of a home—could be the answer for many homeowners and according to one equity release provider, repaying a mortgage and repaying debt are two of the major uses of this retirement finance solution.”