'More Brits to use equity release schemes, expert predicts'
UK consumers will naturally take advantage of equity release schemes in greater numbers in the future, it has been claimed.
[UKPRwire, Thu Apr 03 2008] Peter Williams, an independent consultant working on behalf of the Council of Mortgage Lenders, suggested last week that the government should start actively encouraging the take-up of equity release schemes as Brits are more reluctant than their US and Australian counterparts to use the service.
However, the director general of Safe Home Income Plans (Ship), Andrea Rozario, believes that this is not strictly necessary as growth in equity release schemes will occur in a "matter of time" in any case.
"The reality is that declining levels of private pension provision and meagre state pension benefits will drive more people in this country to explore alternative ways to top up their income in later life," commented Mr Rozario
"Some will work longer, but a very large number are already planning to use the value in their property."
Consumers could also consider a sell and rent back scheme to secure funding for retirement.
National Homebuyers is the UK's leading Sell and Rent Back provider. Director of the fast property sale firm says consumers need to be wary of smaller, less scrupulous operators. "Sell and Rent Back is a great option for people looking to remain living in their home, but release the equity tied-up in it.
"With this beig a growth industry, we warn that homeowners must be sure to use a reputable national company rather than a company that simply has a nice-looking website".
Mr King is also a founder of APBA [Approved Property Buyers Association] which is calling for regulation in the quick property sale and Sell and Rent Back industries.