Top Reasons for Equity Release Jan-June 2024
Recent research by Equity Release lender Canada Life Home Finance shows that clearing an existing mortgage (41%) remains the top reason for releasing equity.
Home improvements continue to rank highly, with 29% of our customers citing this as their main reason.
The top five reasons for releasing equity in H1 2024 were as follows:
| 1. | Clear an existing mortgage | 41.43% |
| 2. | Home improvements | 29.38% |
| 3. | Holidays | 21.73% |
| 4. | Consolidate unsecured debts | 21.07% |
| 5. | Day-to-day living | 19.37% |
Canada Life Comment
Sadna Zaman, Proposition Development Manager, Home Finance, at Canada Life, said:
“Our customers continue to use equity release for a large variety of reasons. Clearing an existing mortgage and home improvements remain the top two.
Day-to-day living is still in the top five, highlighting that customers are perhaps still having to offset increased outgoings caused by the cost-of-living crisis.
However, we have seen an 8% increase of homeowners using the wealth they have built up in their properties to go on holiday.
This figure has risen by nearly 10% vs the same time last year (19.80% to 21.73%), demonstrating that customers are increasingly releasing equity to improve their lifestyle.
The variety of motivations for releasing equity highlights the flexibility and accessibility of the options available, allowing homeowners to enjoy their retirement in a way that best suits them and their families.
Equity release is a lifelong financial decision, and it’s vital that the long-term costs are considered.”
Read more about paying off your mortgage with Equity Release.
Advice is essential
Spectrum Independent is an independent adviser and not tied to any lender. This allows us to search the whole market, ensuring we find you the most suitable lender and product. This gives you the reassurance of knowing our advice is unbiased and impartial.
Advice is essential in this market to ensure you are aware of the advantages and disadvantages. While releasing capital can address several problems, it’s still a loan secured against your property, so caution is advised.
Wayne Slater, our principal, is a member of the Equity Release Council.
The Council represents the equity release sector. It exists to promote high standards of conduct and practice in the provision of and advice on equity release, which have consumer safeguards at its heart.
Contact us today to discuss if Equity Release is right for you.
