Over the past 12 months a number of reasons given increased in popularity including gifting, using the money to supplement income and maintain lifestyle, and funding long-term care needs.
All three reasons increased by over 100% in popularity over the previous year.
Chris Prior, business development manager at Bridgewater Equity Release, said: “In these days of ‘living wills’ many more individuals are opting to use the equity stored in their homes in order to gift money to children, grandchildren and other loved ones.
“We are in no doubt that the struggles many younger people are having in finding sufficient deposit money to purchase a home is having a major impact on why customers opt for equity release.”
However, the top three intended uses for the cash on taking out a Bridgewater home reversion plan remained the same. They were to repay a mortgage at 32%, a fall of 12%, fund home improvements at 31%, a fall of 2% and pay off and consolidate other debts at 25%.
Other major reasons cited by customers included funding travel, buying a car or to have as a rainy day fund. One of the more unusual reasons given was to buy a boat.
