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Capital disregard changes could boost equity release

The equity-release sector has welcomed Budget changes to the capital disregard limits which are now in line with many equity-release drawdown minimums.

Safe Homes Income Plans has been lobbying to raise the minimum level to safeguard equity-release clients’ state benefits. With capital disregard of £6,000, drawdown schemes set at a minimum of £10,000 jeopardise benefits.

Ship says once the disregard is raised to £10,000 from November, this could boost equity release take-up. Director general Andrea Rozario says: “Advisers were worried about explaining the risks of drawdown for borrowers on state benefits. Now, with capital disregard to be raised, no one’s benefits will be at risk when they take out tranches of £10,000.”

Equity Advice managing partner Stuart Wilson says this is positive for equity release but there is much that the Budget failed to achieve for pensioners: “This is painting portholes on a sinking ship – pensioners are still being hit hard by inflation. The Budget needed to offer a root-and-branch reassessment of long-term financial strategies.”


Co-op billed for blunders

An adviser is threatening to take Co-operative Insurance to the small claims court after it refused to pay him compensation for work spent remedying its errors and processing delays on a client’s annuity transfer.

Artemis stocks up on European banks

Philip Wolstencroft has moved the Artemis European Growth fund into an overweight bank position even though he admits the sector caused the fund to underperform last year. The manager says he is only buying higher quality bank stocks thrown up by SmartGarp, the quantitative screening tool used on the fund. However, he says the share […]


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