§ Mrs. GormanTo ask the Secretary of State for Social Security if he has any plans to help house-owning pensioners to gain access to the money they have tied up in their homes.
§ Mr. ChopeI have been asked to reply.
Home-owning pensioners are already able to raise capital on the equity of their homes by means of schemes often known as home income plans, which are offered by a number of financial institutions.
Under a home income plan, an older home owner offers his or her home as security for a mortgage loan which is used to purchase an annuity. The loan is usually repaid when the person sells the house or dies. The Government welcome the availability of such schemes, but I would strongly recommend elderly people to take independent financial advice before committing themselves.