Here we provide an overview of the top 5 reasons our customers chose equity release in 2018.
The figures show later life homeowners were unlocking an average of £80,100 from their homes.
The top 5 ways homeowners are choosing to spend their tax free cash:
- Pay off mortgage/other debts (46.5%)
- Make home improvements (23.3%)
- Provide financial assistance to family (11.3%)
- Live a planned retirement (8.1%)
- Holiday/Car (6%)
Paying off your mortgage
Debt in retirement is continuing to rise and according to Prudential, nearly one in five persons are retiring with an average of £33,900 debt still to pay off. To solve this, many are turning to equity release to help them live a debt free and comfortable retirement. In fact, it was named by our customers as the most popular reason for releasing equity from their homes and to help them have a stress free retirement.
Helping out your loved ones
Financial assistance for your loved ones is another popular reason for releasing equity and we can see why. Being able to see the positive effects an early inheritance has on your loved ones would be an invaluable experience. Especially if customers are releasing equity to help their loved ones with milestones moments, for example, going to university or getting onto the property ladder.
Living a planned retirement
Having a plan for retirement is important, yet in life the unexpected can often eat into your retirement savings. Equity release can help to solve this by releasing cash from your home, helping you to live out retirement the way you intended and with less worries.
Seeing the world
Have you ever dreamed of travelling the world but never found the time or money? Retirement could be the perfect opportunity to escape to some of the most breath taking corners of the globe. Whether for a holiday of a lifetime, or a 3 month long cruise, seeing the world remains a top reason for releasing some of the tax free cash from your home.
For more information on releasing equity from your home, why not speak to one our specialists?
Just call our Freephone: 0800 411 8668