More than three in five (61 per cent) homeowners are looking at releasing money from their home in later life, findings from the Equity Release Council have revealed.
The research, which surveyed 5,000 UK adults, found this had increased from 2021 when 57 per cent of people said the same.
The council also found 39 per cent of people believe it is becoming more common and more acceptable to have a mortgage in later life.
ERC CEO, Jim Boyd, said: “In an ideal world, most people would retire with a mortgage-free home and a substantial pension but that is not the reality of modern Britain.
“People are choosing products such as ultra long mortgages out of necessity as the lower repayments allow them to purchase a home, save into their pensions, and finance their day-to-day living expenses.
“The rise of products such as ultra long mortgages highlight the changing relationship people have with property wealth as it is increasingly being seen as an asset rather than simply bricks and mortar.”
Almost half (46 per cent) of homeowners aged 55 and over now see property wealth as a means of satisfying later life needs.
Even stronger appetite exists among younger homeowners as 75 per cent of those below the age of 55 said they were open to leaning on their property wealth in later life.
“We need to support people to look at all their options when it comes to funding retirement whether it is pensions, property or investments. One size does not fit all,” Boyd added.
Motivations
The research also examined people’s motivations for releasing equity, discovering that, among homeowners aged 55, the most common desire was to pay for care at home, mentioned by 17 per cent of respondents.
This was ahead of boosting retirement (16 per cent) and funding travel plans (15 per cent).
Supporting the financial wellbeing of younger family members was also found to be an important priority as 14 per cent said they were interested in “giving while living” and 13 per cent looked to give money to younger family members to support financial goals.
Equity Release Supermarket founder and CEO, Mark Gregory, said: “The equity release sector has significantly evolved in line with consumer demands and now encompasses far greater opportunities around later life living and finance.
“The beauty of the market today is that there are tools and platforms that exist, which help consumers to navigate these choices, enable them to review all options, view real-time rates and gain whole of market advice.”
tom.dunstan@ft.com
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