Equity release schemes could help Brits without savings

People in the UK borrowed 37p for every one pound they saved in the first quarter of the year, new research has revealed.

The study from Unbiased.co.uk showed that this is a big shift from mid-2008 when Britons were spending £1.67 on debt repayments for each pound saved.

According to the price comparison website, this change indicates that savings levels have not yet recovered from the impact of the recession.

Karen Barrett, chief executive of Unbiased, said: "Brits appear to have started 2010 with a tighter grip on their finances, as they are not borrowing as much as they were in 2009, even though this has resulted in a drop to savings levels.

"With interest rates still at an all-time low and inflation on the up, it is important for people to ensure they are making their savings work hard for them, no matter how little they can afford to put away."

Equity release schemes could offer those expats retaining a property in the UK with a solution to repay their debts as such plans allow people to unlock cash against the value of their properties. This money can then be used to pay off outstanding arrears.