The number of people getting an equity release plan in order to pay off debts and enjoy some of the finer things in life is on the increase.
Research from Key Retirement Solutions showed that 30,000 plans were taken up last year with £1.4 billion being borrowed. This represents a 8.6% growth on the previous year.
Equity release is where you sign over a percentage of your property to the provider and in return get a lump sum of cash to spend in whatever way you choose. It's particularly popular amongst the retired as it allows them to enjoy their later life and not have to struggle with their finances.
40% of the people who take on an equity release are reported to use the money to pay off their debts.