16% Rise In Debt Among Retired Homeowners, Warn Dorset Equity Release Solicitors12th Jan 2015
Cash-strapped pensioners are being forced to borrow more to make ends meet - despite owning their own homes, warn Dorset solicitors Coles Miller.
New research reveals that unsecured debt among homeowners aged 65+ has leapt by 16 per cent in just 12 months.
Two in five of them have had to use credit cards to pay their household bills.
It is a worrying trend, say solicitors Coles Miller following the study by the Equity Release Council.
The new research shows the average amount of unsecured debt owed by homeowning pensioners now stands at £1,546.
Some senior citizens are finding it hard to borrow money at lower interest rates because lenders are reluctant offer credit to people who are no longer working.
Equity release solicitors at Coles Miller help older people to top up their income by releasing money from the property they own.
Coles Miller Partner Anthony Weber said: “Equity release plans are effectively mortgages in reverse.
“You are borrowing money against the value of your home - but you don’t have to make monthly repayments.
“Equity release is regulated by the Financial Conduct Authority and is protected by the Equity Release Council’s Safe Home Income Plans (SHIP) standards. The loan would be written off if it were to exceed the value of the home.”
Coles Miller has four offices in Poole, Bournemouth, Broadstone and Wimborne. The firm has 14 Partners and around 120 staff.
They help clients with a wide range of legal advice: conveyancing; leasehold property; divorce; wills and probate; personal injury and clinical negligence; commercial law; planning; disputes and litigation.
Equity release is one of many services provided by the firm’s specialist Wills, Tax and Trusts team.
Its solicitors provide expert advice on wills and probate (including disputes), Inheritance Tax planning, trusts plus powers of attorney and other work involving the Court of Protection.
In a recent customer service survey, Coles Miller was recommended as “excellent” by 99 per cent of its clients.
For more information, please contact Coles Miller Partner Anthony Weber, 01202 694891.