HML: Equity release a possible solution
12 June 2012
Homeowners who do not want to leave their house and move to another residence or even into a care home are likely to be looking into ways to make this a reality.
According to HML, equity release plans are among the options on the table for those who do not want to go through the stressful process of relocating to a new house.
Andrew Jones, chief executive of HML, explained the firm has been in talks with industry consultant Neil Forrest to see what potential uses equity release could have in the future.
Keep people at home
Speaking to Mortgage Strategy, he stated the motivation is to be able to keep people in the homes they want to live in for as long as it is possible to do so.
"One of the ideas [Mr] Forrest has got is that if you're nearing retirement and your income falls then potentially you could roll up some of the interest as well as the capital," Mr Jones told the news provider, adding the lender should be happy with this outcome as long as there is still some equity left in the property's value.
However, Mr Jones noted this is not going to be a quick fix for the equity release industry - which is currently in a state of flux as a result of changes with the sector's regulation - as it is just an idea that is in need of more discussion before any action can take place.
"So long as the customer is still making some repayment and provided there is some equity left in it, then at the end of somebody's life you've kept them in their home," he said.
Phyllis Wallbank, 93, recently told This is Money that she used an equity release scheme due to the fact she did not want to leave her home, as she believed this would have an impact on the level of independence she enjoyed.
Those wishing to find out more about the products on the market could do so by using the equity release calculator from Key Retirement Solutions.
Posted by Tom Papworth