Equity release market rises by 141% in Scotland

30 December 2008

An increasing number of Scottish consumers, potentially including those experiencing debt problems, are choosing to release equity from their properties in a bid to free up cash.

According to figures released by Norwich Union, the equity release market north of the border has grown by 141 per cent over the last decade.

The firm claims that £115 million of property value has been released through it alone.

It was also found that the average age of Scots who choose to release equity from their homes is 69, which is "one of the highest average customer ages".

Norwich Union suggests this could reflect a tendency for consumers in the country to save more money throughout their lives, meaning they are less reliant on equity release as a means of coping financially.

Anthony Rafferty, head of marketing at Norwich Union Post Retirement Products, commented: "At whatever age people decide to use equity release, the figures show that it has become a mainstream financial product and the future for this market is very bright."

Meanwhile, the government recently revealed the details of its Homeowner Mortgage Support Scheme, under which homeowners who are struggling to meet their home loan repayments and who fulfil certain other criteria are to be able to pay less per month for a set period of time.

Tags: equity release, remortgage, debt problems

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