New research has found that equity release is used by the elderly mainly to improve their home or pay off their debts – proving how flexible secured borrowing can be.

Key Retirement Solutions has found that equity release borrowers in the North are also most likely to spend the cash released from their home on improving them 69%, followed by the North West 67% and Yorkshire & Humberside 66%

It also found that the North and London are the most generous regions as 16% of those who opt to release equity in their home give some of the cash released from their homes via equity release as a gift to their families. But then it appears those in the North are also more focussed on their lifestyles, as nearly two thirds (58%) spend the money released from their home on holidays.

For those people with a property value of less than £200,000 home improvement is their biggest priority, which comes before repaying debts or mortgages. Looking at all property values those which stand at less than £200,000 are more likely to spend the cash on a holiday than any other value of property.

KRS also found that, as can be expected, those with a property value of more than £750,000 are the most generous, as a quarter give some of the cash as a gift to their family.

Dean Mirfin, KRS business development director says: "The most popular reasons at all ages do not come as a great surprise, being home improvement, repaying debt and holidays. Whilst few appear to release equity for an extra monthly income, many incomes are directly improved by the repayment of debt.

"The figures continue to show, that for the many thousands in or approaching retirement, the need and desire to release equity is targeted at those outcomes which will have a dramatic, positive, effect on their standard of living."

If you think you could benefit from using equity in your home in your retirement years, talk to your mortgage adviser today about the potential that is sitting in your home.

SOURCE: KRS, 09/03/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

The latest drop in bank base rate has meant that savings accounts are paying out very little to elderly people who need the interest to survive – meaning equity release demand is on the rise.

Equity release is a form of secured lending where an elderly person's home's equity is released so as they can enjoy their lives and clear their debts later on in life. Many elderly people own most of or all of their homes so equity release has the potential to unlock trillions of pounds all over the UK.

David Cooper, marketing and distribution director at Just Retirement says: "The latest news of a further reduction in the base rate will hurt retired people living off their savings. The extent and speed of rate reductions since August may have defeated attempts at planning and left pensioners struggling to cope with a rapid reduction in income from their savings, especially once tax is taken into account.

"Simultaneous with loss of income, the newspapers report that food price inflation has risen to 9% for the 12 months to the end of February despite significant falls in the general level of inflation.

"Taken together these two factors could significantly damage the standard of living of pensioners who will now be seeking alternative methods to generate income from their assets. In many instances they may be forced to spend capital, thus harming their ability to return to normal even when interest rates eventually rise again. Equity release may be able to restore income levels either for those whose assets are already depleted or, when the time is right, those who could be left with insufficient funds over a period of time."

If you think its time to unlock some of your home's potential, talk to a mortgage adviser about what you can do.

SOURCE: Just Retirement, 06/03/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

Brits are feeling the pinch, so much so that the first monthly payment to go for 31% would be essential outgoings including loan repayments, credit card bills and mortgage payments

New research from Fairinvestment.co.uk has found that 62% of Brits have noticed their finances being stretched since the beginning of the credit crunch. And, as budgets are stretched, a third of them are considering cutting back on essential monthly repayments and bills including credit cards, loans and mortgages, suggesting that their finances are being so badly stretched that they have already made significant cutbacks elsewhere.

When asked what one monthly payment they would cut back on if they had to choose one, a fifth of respondents said they would have to re-assess their credit card repayments, 7% said they would have to cut back on their monthly loan repayments while 4% of respondents would be forced to look at their mortgage payments.

Sharon Bratley, chartered financial planner at Fairinvestment.co.uk, says: "The results show how difficult it is for people at the moment to juggle their finances. It is important that people prioritise their outgoings and try to reduce their debt as far as possible.

"It is vital that if people have to cut back, they do so in a way that doesn't actually cost them anything more, for example, you should keep paying your mortgage and credit card bills to ensure that you don't have any further charges applied."

If you are having trouble meeting all your demands, it might be time to consider having less demands – consolidate all that you can to avoid having to miss payments, which could cost you more than you think.

SOURCE: Fairinvestment.co.uk, 03/02/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

The Government has been criticised for just cutting interest rates and not thinking about those who are already burdened with unsecured debt.

According to fool.co.uk, six out of ten people say another cut in rates will not help. They are already in debt, and their mortgage and their loans may not be affected by any changes to the base rate.

David Kuo, Head of Personal Finance at Fool.co.uk, says: "The 1% cut in rates has brought the cost of borrowing down to levels not seen since World War II. However, it is unclear whom the rate cuts are supposed to benefit – it won't assist with credit-card and store-card debts.”

It may not. But there is no point waiting to be rescued if you are over-burdened with unsecured debt. There are trillions of pounds of debt owed by Brits, and the Government cannot pay that all off, however good they are.

The only person who can really help you is yourself. You have the ability to use your home’s equity and you are the one who can plan your finances so as to limit debt and start paying off your responsibilities. You are also the one who can pick up the phone and talk to your mortgage adviser.

The base rate might not affect you, but a mortgage adviser can. They can point you in the right direction and help lift some of the burden off your shoulders. It might not be easy and it might take time, but it is better than waiting for a solution to come riding round the corner.

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

Eighty per cent of Britain will spend less on Christmas than they did last year, as debt and mortgage problems swamp the nation.

According to the Institute of Customer Services, women will be guarding their purse strings more tightly than men, but all age groups, regions, incomes and professions in the survey have shown their concern over the economic downturn.

However 20% said they would spend more during the festive season than a year ago, in the new Christmas spending poll of almost 12,000 people.

Although it’s good to see people are putting their debt priorities first, many of the 20% who have decided not to curb spending in the run up to the holidays may risk extending their debts with frivolous buying.

David Parsons, ICS chief executive, says: “Christmas is the busiest time of the year for many, so this trend will make for worrying reading.”

If you are considering unsecured debt as a means to fund shopping for Christmas, think again. Although there is a lot of pressure to spend at Christmas, especially for those with children, unsecured debt is bad news and must always be avoided.

Credit cards, store cards and personal loans may help in the run up to December 25, but once 2009 comes round you might find yourself unable to manage mortgage repayments, debt repayments and rising interest.

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

Borrowing a large amount of money is a serious step and its important to ensure you get the best deal to make it as inexpensive as possible. This guide talks you through the stages of applying for a secured loan from the initial decision making to what the best products are. It also offers you some tips on how to speed up your secured loan approval. Whatever you want to spend the money on, a secured loan could be the cheapest way to borrow the money. So before you leap in, take some time to get to grips with the product and read this helpful guide.

Learn more about Secured Loan Approval