Data contained in the 2018 Equity Release Report published by Key, a retirement finance specialist, shows that 27% of UK homeowners who used equity release products did so to help younger relatives buy property last year, up from 24% in 2017. The latest report highlights the emerging and sustained prominence of the Bank of Mum and Dad as a legitimate lender in the housing market. In total, lending increased from £3.1 billion to £3.6 billion, an 19% rise on 2017’s figures.
The biggest reason for using equity release products in 2018 was to fund home improvement and modification for later life, with 64% of equity release products citing home and garden upgrades as the main use for the loans.
Debt consolidation and financial liability reduction accounted for 31% of the reasons given when withdrawing from the equity in the home. However, a third of products users admitted to spending some of the proceeds on a luxury treat for themselves to kick off their retirement with a dream holiday! Many also wanted to invest the cash into easily accessible funds such as ISA’s.
There are many products on the market, tailored to differing needs and we recommend you always seek professional advice before embarking on an equity release to fund your plans.
Redwood is one of the Souths’ leading Pensions, Investments, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of Financial Planning, we can advise on any situation. Join us at one of our Free Public Information Seminars: Book online Book Me A Place!, Call us on 01489877 547 or Email info@redwoodfinancial.co.uk to book a FREE Initial Meeting with us to review your financial planning needs.
