One in Four Older Homeowners in the West Midlands Who Use Equity Release Do So To Help Family
11 March 2019
Nearly one in four older homeowners in the West Midlands are using their property wealth to help out their families, new data from the UK’s leading independent equity release adviser Key reveals.
Its analysis shows 24% of retired homeowners taking out equity release plans in the West Midlands last year used some or all of the cash to support children. Money gifted to families is typically being used to clear debts, pay for significant life events such as weddings or to fund house deposits. Key’s figures show other major uses of gifts are to pay for large family holidays, fund university fees or buy cars.
Average pay-outs from homes across the West Midlands last year were around £61,400 with more than £222 million of property wealth released, Key’s figures show.
While nearly one in four (24%) use equity release to help family and friends, 67% use it to fund home and garden improvements - re-investing some or all the money in their houses so that they can stay in their homes in retirement. The next most popular use of the money released was for going on holiday with 36% funding trips away. Debt worries however remain a concern in the region – 29% of retired homeowners paid off credit cards or loans with their property wealth while 23% cleared existing mortgages.
Will Hale, CEO at Key, said: “Retired homeowners in the West Midlands are making full use of the property wealth they have accumulated to enhance their standard of living in retirement and help their families.
“Intergenerational fairness is a hot topic at the moment and increasingly we are seeing people choosing to provide family and friends with the financial boost they need to clear debts, fund university fees and pay for house deposits and weddings. However, equity release is not a single use product and as well as helping family, older homeowners also use it to pay off their own debts, improve their homes or gardens and paying for holidays.
“Good independent expert advice is key to ensuring that older homeowners receive the most benefit from their property wealth and use it in the most appropriate way for them and their families.”
The table below compares the West Midlands with the rest of the UK
|WEST MIDLANDS||UK Average|
|TOTAL PROPERTY WEALTH RELEASED||£222.771 million||£3.600 billion|
|TOTAL PLAN SALES||3,627||47,081|
|AVERAGE PROPERTY WEALTH RELEASED||£61,442||£76,473|
|HOW MANY SPENT ON THE HOME||67%||64%|
|HOW MANY SPENT ON HOLIDAYS||36%||33%|
|HOW MANY PAID OFF DEBTS||29%||31%|
|HOW MANY SPENT ON FAMILY||24%||27%|
|HOW MANY PAID OFF MORTGAGES||20%||22%|
|HOW MANY ARE PAYING BILLS||12%||12%|
|HOW MANY SWITCHED FROM ANOTHER PLAN||1%||3%|
|HOW MANY ARE REDUCING IHT||1%||1%|
Anyone looking to release equity from their home can get Key’s independent guide to equity release by calling 0800 531 6027 or visiting https://www.keyadvice.co.uk/equity-release/is-it-right-for-me