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Centre for Policy on Ageing | |
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| Report on equity release mechanisms | | Author(s) | D J Le Grys |
| Corporate Author | Faculty of Actuaries; Institute of Actuaries; Age Concern England - ACE; Joseph Rowntree Foundation - JRF |
| Publisher | Faculty and Institute of Actuaries, London, 2001 |
| Pages | 34 pp |
| Source | Faculty and Institute of Actuaries, Press Office, Staple Inn Hall, High Holborn, London WC1V 7QJ. |
| Keywords | Home equity release schemes ; Consumer choice ; Reports. |
| Annotation | Equity Release Mechanisms (ERMs) are financial schemes, normally mortgage or reversion based, which enable householders (particularly older people) to obtain capital or income which is only repaid when moving house or on death. However, ERMs are not popular and few people use them. This report outlines the main reasons: lack of information on product types; not enough providers; those on low incomes lose the Minimum Income Guarantee (MIG) if they take out an ERM; patchy regulation; and problems with tax treatment and with interpretation. There is a clear need for a service to help older people with moderate means and with low to medium priced houses to supplement their income, to raise money for capital needs, and generally improve their quality of life. The report recommends ways for making ERM products more attractive and for increasing their take-up. Appendices include information on the Home Improvement Trust, the text of an Age Concern factsheet on raising income or capital from one's home, and on reverse mortgages in the US. (RH). |
| Accession Number | CPA-010130522 B |
| Classmark | WQB: WYC: 6K |
Data © Centre for Policy on Ageing |
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| ...from the Ageinfo database published by Centre for Policy on Ageing. |
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