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As the mortgage crisis gets worse, pensioners are finding it increasingly difficult to keep making their payments on motor loans and other loans. There is little available equity that could help pay off a motor loan and for many there are few options when it comes to paying down their motor loan to avoid defaulting on the payments.

Andrea Rozario, Director General of SHIP said: “The current situation in the property market does not mean the door is closing on equity release - far from it. Falling property values do however make the very high standards that SHIP members must adhere to all the more important to consumers, especially the guaranteed security of tenure and the no negative equity protection that guarantees customers can never owe more than the value of their property.

Declining levels of pension investment - by individuals and employers - and the extent to which Britons have in preference invested heavily in property for many years now, mean that equity release will become increasingly important, even if property values do come down from their recent highs for a while. There is an argument for those planning to access the value in their property to move quickly if their need is imminent. Those looking to the longer term should take comfort in the longer term trend in property values which is always up.”

Related reading: Motor Loans