Almost one in every 10 people experiencing divorce will be aged over 60 and that’s boosting demand for equity release products, says financial planning firm LEBC.
The firm highlights that by 2037 and between now and 2032 there will be 40,000 interest only mortgages maturing annually, with no obvious repayment vehicle.
Many older people still with mortgages and/or other debts and silver separators may even need to take on new borrowing to ‘buy out’ a former partner.
Kay Ingram, director at LEBC, said: “The equity release products now available are cheaper and much more flexible than they once were.
“Borrowers do not need to sell their home or any part of it, do not need to allow interest to accrue/roll up if they do not want to and can even make repayments of the debt if they can afford to.”
Members of the Equity Release Council also only offer products which contain a no negative equity guarantee.
Equity release lending has increased in 2017, with lending reaching £3bn according to data from the Equity Release Council, and looks set to increase even further.
Ingram added: “Equity release can also be used to purchase a new property (and does not have to be taken from an existing one) – this can also be useful in a divorce scenario and family lawyers may increasingly need to consider it as part of the solution for older divorcees.”