Posted by: Una Farrell, 7 August 2012
Grandparents are being forced to release equity from their homes in order to help out struggling children and grandchildren according to a new report from Key Retirement Solutions.
It found that £424million was taken out in ‘equity release’ products during the first six months of this year, with a record 31% saying that the motivation was to lend or give money to their family.
Equity release is a way for people 55 and over to release some of the money tied up in their home, without the need to move.
But at StepChange Debt Charity we would urge people to seek free, specialist advice and consider their own future before using equity release to help out their children and grandchildren.
A spokesman said: “While equity release to help children or grandchildren get on the property ladder or pay for their education can be gratifying for many, it can be a huge burden for others.
“There are a lot of costs associated with getting older, and it is crucial that these are factored in to any decisions about equity release."
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