Equity release mortgages require consideration

Homeowners must consider a number of factors before opting for equity release or lifetime mortgage products, according to new advice.

Charity Age Concern has suggested that equity release "should never be undertaken lightly", with older people encouraged to pursue other options beforehand.

Director general of the origination Gordon Lishman explained that equity release mortgages can sometimes help those struggling with debt.

"Equity release is a major commitment, but for some people it can be a very good way to help ease financial pressures in later life," he commented.

For older people, the products can provide some welcome relief, offering a way of "raising extra cash".

"Many older people are ‘asset rich’ but ‘cash poor’ and increasing numbers are turning to equity release," Mr Gordon added, reminding borrowers that careful planning and independent financial advice should be taken into consideration first.

Meanwhile, recent research from Scottish Widows has revealed that a growing number of older Britons cannot afford to give up work at the state retirement age.