A report launched this week to be debated in the House of Lords will call on the Government to deliver its own alternative to equity release, according to The Sunday Times.
Entitled “The UK Equity Bank: Towards income security”, the report by Cass Business School and the International Longevity Centre says Government could exchange an income in retirement for a share in a homeowner’s property. The debt would be repaid from the sale of the property upon death.
The report, due to be released tomorrow, will estimate that up to 80,000 homeowners might access it, compared to 19,000 that current use equity release annually.
In February, Pure Retirement became the first equity release loan provider to launch since 2010.