When considering a remortgage most homeowners are thought to be securing a lower interest rate or perhaps taking cash out of their equity to pay down debt.  It appears that there could be a new and unexpected use of the built up equity in a property by taking out a remortgage to fund a small business.  According to a recent study by the Office of National Statistics a large number of Britons at age 50 and older are becoming self-employed since the recession.

The study revealed that the number of self- employed grew from 367,000 to 4.2 million and this is the largest number recorded since 1992 when the number of self-employed began to be tracked.  The largest percentage of the new business owners is coming from the age group of 50 and older of which they make up 80% of the total. 

The reasons for the increase are many.  Some chose to make a switch in their careers due to a lack of confidence in maintaining employment.  Others find it hard to become employed at an older age after losing their job.  There are others that believe it is an opportunity to be discovered in the midst of a weak economy.

Keith Simpson, chief executive of Skilled People.com, remarked, “Eight in ten older people who are looking for a job say they think they are the victims of age discrimination.

“As their jobs options are narrowing down, they have to look to other ways that they can stay economically active. Self-employment is the obvious one.”

It is of course a risk filled venture to consider using a savings of equity built within a property to fund a small business.  Experts suggest the homeowner exercise caution and seek advice prior to jumping into the small business arena.