One in Four Older Homeowners in the Yorkshire Who Use Equity Release Do So To Help Family
11 March 2019
Around one in four older homeowners in Yorkshire & The Humber 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 25% of retired homeowners taking out equity release plans in Yorkshire & The Humber 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 Yorkshire & The Humber last year were around £57,350 with more than £242 million of property wealth released, Key’s figures show.
While one in four (25%) use equity release to help family and friends, 65% 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 throughout retirement.
Nearly two out of five (39%) were able to use some of the cash to pay for holidays. But debt worries were a major concern in the region – 31% of retired homeowners paid off credit cards or loans with their property wealth while 19% cleared existing mortgages.
Will Hale, CEO at Key, said: “Retired homeowners in Yorkshire & The Humber 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 Yorkshire & The Humber with the rest of the UK
|YORKSHIRE & THE HUMBER||UK Average|
|TOTAL PROPERTY WEALTH RELEASED||£164.422 million||£3.600 billion|
|TOTAL PLAN SALES||2,988||47,081|
|AVERAGE PROPERTY WEALTH RELEASED||£55,019||£76,473|
|HOW MANY SPENT ON THE HOME||66%||64%|
|HOW MANY SPENT ON HOLIDAYS||39%||33%|
|HOW MANY PAID OFF DEBTS||31%||31%|
|HOW MANY SPENT ON FAMILY||25%||27%|
|HOW MANY PAID OFF MORTGAGES||19%||22%|
|HOW MANY ARE PAYING BILLS||11%||12%|
|HOW MANY SWITCHED FROM ANOTHER PLAN||3%||3%|
|HOW MANY ARE REDUCING IHT||N/A||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