A new report has shown that pensioners are using equity from their homes after suffering from debt problems.

Other pensioners were using the equity released from their homes to retire comfortably , whilst some are using the money to give to their families or make large purchases, according to the report by Age UK.

However, it seems that the recession put a dampener on the number of pensioners looking to release equity from their homes and there has been a trend of more pensioners adding rather than withdrawing equity. Releasing equity essentially allows homeowners to take out loans against their home.

Age UK said that more pensioners were likely to have debt problems because they found living off of their pensions harder and harder. Equity release provided an easier option to pay for things, since savings are getting so little return.

The research found that the priority of pensioners is to remain in their family home rather than selling and moving to a smaller, cheaper property. Two thirds of those surveyed said that they would not want to move away from their family, friends and local area while a further quarter said that moving house was too expensive.

Age UK have warned that although around two-thirds of over 65-year-olds have paid off their mortgages, they are still struggling to maintain their homes because of their low incomes.