The most recent figures from retirement income providers Retirement Advantage show funding home or garden improvements and also clearing and consolidating existing debts are the most popular reasons for using equity release.

Home improvements were the most common reason given for taking out equity release loans in Q3 according to Retirement Advantage’s customer data, with 25% taken out to help pay for renovations. One in five customers taking out equity release loans between July and September quoted settling their mortgage as a reason, with nearly 13% using it to help consolidate unsecured debts.

Summarising the report Retirement Advantage suggest there is an increase in the number of customers recognising that their property can play just as much a role in their retirement planning as pension income and other assets. The data shows a wide variety of reasons given for using equity release, from buying cars (9%), funding holidays (12%) to helping family members who are first time buyers (3%) to even covering day to day living expenses (12%). Significantly, one in 20 loans are taken out to buy new property that could in turn be eligible for equity release.

Known as “Lifetime Mortgages”, our team have the specialist qualifications necessary to advise on these types of loans.
If you are interested in receiving a personalised illustration, please give us a call for your free initial consultation.

Your Expert Mortgage and Insurance Advisers 01473 213312

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.