Relief Debt Systems

For many over-55s out of work, the prospects of finding a job are increasingly difficult with the Institute for Public Policy Research (IPPR) reporting that 46% of those out of work have been for over a year.

As a result, with the cost of living increasing, many of these unemployed homeowners may need to seek alternative sources of income. This is where an equity release scheme could help.

Equity release schemes have the potential to unlock a tax-free lump sum from the value of a property to supplement income. The schemes are available to homeowners aged 55 years old or more.

Prolonged unemployment can be a considerable drain on resources especially in these tough economic times. Nick Pearce, the IPPR’s director, said: “Being out of work for more than a year can have a scarring affect, making it harder to get a job as well as having a negative impact on one’s health and wellbeing.”

Releasing equity from the value of a property could be a way to ease the burden of having to make monthly repayments on debt, manage the day-to-day cost of living and improve one’s outlook.

Think carefully before securing other debts against your home. By extending the term of the debts you will be increasing the overall cost.

Taking out an equity release plan could affect current or future eligibility for means tested benefits and affect the amount you may wish to leave as an inheritance.

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