Equity release 'losing its stigma'

Many people are turning to equity release programmes as they try to better their lifestyles with money gained from releasing the equity from their home, according to one expert.

Dean Mirfin, a business development director from equity release advice firm Key Retirement Solutions, says that the perception of equity release firms used to be that they were a 'desperation purchase', but that this has changed now.

There is now a lot less stigma attached to them and so people are more open about telling their friends and neighbours about them.

"The majority of people who are actually doing it are doing it for lifestyle choice," said Mr Mirfin.

"If you look at what people are doing with the money, about one in three are using the money for holidays, so obviously that's not desperation, that's enjoying the money from the property."

Lifetime mortgages account for about 90 per cent of the equity release market while home reversion plans account for the other ten per cent.


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