EQUITY mortgages are making "a comeback" according to a Worcestershire law firm.

One of the reasons for this, according to Mark Thomson, head of financial services at Morton Fisher Solicitors, is pensions are not "living up to expectations".

"Equity release mortgages, once reviled and dismissed as costly, are making a comeback.

Efficient

"This is because older people are finding their pension is not living up to expectations and they are cash poor but sitting on a major capital asset, their home.

"Also, equity release mortgages offer extremely efficient tax planning opportunities."

He said it was important everyone affected in the long term understood what was being considered.

"We always recommend the whole family is in on the decision.

"Families can view mum and dad's house in a number of ways. Some see it as their rightful inheritance, and that their share will be coming their way one day.

"Some older couples, now perhaps grandparents, want to help their offspring and their grandchildren when they need cash to help with their education or with the cost of being at university - or perhaps free up some capital to help their children buy their first house.

"Others see it as a source of capital for mum and dad to enjoy their life to the full while they are still on this earth.

"What neither side wants is to lose value unnecessarily and that is where the careful selection of the right product and skillful tax planning comes in to play."