People are coming into retirement realising that they are in a far worse financial situation than they had anticipated.
As a result of this, most people are stating the main reason they are turning to equity release is to boost their retirement fund. However, it seems that the monies are being used to make home improvements
According to SunLife’s Equity Release Report 2020, 55% of people stated that they were looking into equity release for extra income.
Out of the number that took out equity release, 41% used the monies for their intended purpose.
Out of the total amount of equity release customers, a majority of 60% used their monies to make home improvements.
In comparison to the 32%, who were initially looking into equity release, stated home improvements as their purpose.
According to SunLife’s report, 22% the third most popular reason for using equity release was to buy a car.
Surprisingly this was seventh (16%) on the list of purposes when looking into equity release.
Using their monies for holidays was important for 27% of people who were looking into equity release.
When only 7%, who had taken out an equity release plan, had used their monies for holidays.
Surprisingly using equity release to pay off their mortgage was considered by 17%.
The Average release by homeowners is £47k.
SunLife’s research shows that the average amount released is £46,928.
£58,669 is the average remaining mortgage amount, still left to pay according to the report.
The SunLife Equity Release Report was created by asking 1,010 homeowners aged 50-80 to complete an online survey.
No Place Like Home
According to the report, 53% of over 50’s love their home and can not see themselves moving.
28% of over 50’s are considering downsizing or moving in future, and 12% said they would like to move, but they can not afford to.