In the last year, clients of Consumer Credit Counselling Service’s (CCCS) equity release advice service unlocked an average of £29,983 of capital from their homes to help pay down debts and meet other costs.
Homeowners over 55 contacting CCCS for help last year owed an average of £29,772 on credit cards, personal loans and other unsecured debts. The charity says that increasing numbers of its older clients have released equity from their property as a way of clearing what they owe.
CCCS equity release manager Tom Moloney said: “Many clients are rightly cautious when considering equity release, but with the right advice and guidance this is an attractive solution for some – especially for those who wish to resolve their debt problems without moving home.”
In 2010, CCCS launched a subsidiary, CCCS Equity Release, to provide the UK’s first free equity release advice service. Advice fees from other equity release providers typically range from £595 to £995 – a cost that the charity says can significantly worsen the financial positions of older people looking to equity release as a way to pay down high levels of debt. The CCCS Equity Release service is provided with no advice fee and is backed up by the charity’s comprehensive debt counselling service, ensuring that equity release is only offered to those people for whom it is the best solution.
