Equity release ‘used to consolidate debts’
Article Category: Debt Consolidation Help and Advice
An increasing proportion of Britons are turning to equity release plans as a means of consolidating debt, it has been claimed.
Sue Anderson, head of member and external relations at the Council of Mortgage Lenders, suggests that the figure could be rising due to new affordability concerns.
Historically such methods were used to obtain funds for home improvements, she advises.
But she adds that the number of people “using it to consolidate other debts or to replace more expensive, unsecured debt” is growing.
“We know that the UK is becoming more indebted and that would seem to be a logical thing that people may well be doing,” she concludes.
Ms Anderson notes that remortgaging a property can be an effective means of releasing some of the equity which has already been paid off of the existing mortgage.
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