Remortgaging, or
equity release, could be a valuable option for
UK residents reaching
retirement, according to experts.
Although
remortgaging has previously been viewed as a "last resort", but more product options have increased viability, states comparison and
advice company Defaqto.
The information has been outlined in a
report by the company entitled
Equity Release in the UK – Easy
cash or the Final Resort.
Defaqto also highlights increasing life expectancy, insufficient
personal pension plans, the fall in
state pensions and low
interest rates on
savings as contributing factors in a potential future growth in remortgaging.
David Black, Defaqto’s head of
banking and
author of the report, commented: "It is an unfortunate fact of life that most people will have a significant shortfall between their
retirement income and their expected spending needs if they wish to retain their current
lifestyle .
"It is likely that the use of equity release will become even more important in the future and this may eventually be by compulsion, as governments cast around for ways to supplement state
pensions ."
Defaqto offers advice on
mortgages, savings,
personal loans,
credit cards,
insurance and
investments .
