Cash In The Attic - Equity Release

Older homeowners are increasingly looking to release equity from their property to fund their retirement. But what is the best course of action?

As a means of raising income and/or capital, equity release has become an increasingly attractive option for older homeowners - often usurping more traditional mortgages. The products are well-priced and regulated by the FSA and product innovations mean customers now have many options.

In 2007, demand for equity release increased by 9%, with the popularity of lump sums declining in favour of drawdown. The total number of loans rose from 27,000 to 30,000 and the amount of equity released leapt by 24% to almost £1.4bn. By contrast, the market share of home reversion plans fell slightly.