Equity Release Council

Making equity release safe for you



Using equity release to meet your needs

 


There are many different ways that people choose to spend the money they receive from equity release.  The biggest appeal for over-55 homeowners is the prospect of extra retirement income to manage everyday costs (43%).


Other attractive uses include funding home improvements (40%), paying for a holiday (39%) and providing money to family members, for example, to help buy a house (27%).


Table 2: What over-55 homeowners would use a £60,000 equity release plan for?


 

% who would use £60,000 for this

How much they would use for this

How much they would use as a % of £60,000 sum

Extra retirement income to meet everyday costs

43%

£17,909

30%

Funding home improvements to add value

40%

£9,415

16%

Paying for a holiday

39%

£8,269

14%

Providing money to family members

27%

£14,528

24%

Buying a car

22%

£11,165

19%

Funding home improvements for care needs

21%

£10,345

17%

Paying off existing debts

17%

£7,856

13%

Paying off a mortgage

15%

£28,362

47%


Customers are attracted by the flexibility of using their housing wealth how they choose and with options to receive regular monthly instalments, a one-off lump sum or a combination of both. Within the equity release market, drawdown products - which provide customers with an extra source of regular income - accounted for two thirds of equity release loans (66%) in Q3 2013.




Find a member
New member enquiries