New data from top insurer and later life provider Canada Life shows the top reasons for Equity Release.

Key Takeaways:

  • Clearing existing mortgages remains the top reason for equity release (41%), but popularity declined slightly.
  • Home improvements (28%) and day-to-day living (17%) follow closely behind.
  • Holiday funding surges to pre-pandemic levels (20%), reflecting pent-up demand.

While clearing existing mortgages remained the most common reason (41%), its popularity saw a slight dip compared to previous years. Home improvements (28%) and day-to-day expenses (17%) took the second and third spots, respectively.

Interestingly, the number of homeowners using equity release to fund holidays jumped to 20% in 2023, matching pre-pandemic levels. This suggests a potential return to travel normalcy and pent-up demand for leisure spending.

Read more about paying off your mortgage with Equity Release.

Day-to-day living was 17% (down from 20% in 2022) and consolidating unsecured debt was 16%.

Sadna Zaman, Proposition Development Manager, Home Finance at Canada Life, commented:

“Homeowners continue to leverage equity release for various purposes, from managing mortgages to enhancing their living spaces. With rising living costs, some use this option to manage day-to-day expenses. The diverse motivations highlight the flexibility and accessibility of equity release solutions, empowering homeowners to enjoy their retirement on their terms.”

Zaman emphasised the importance of careful consideration due to the long-term financial implications of equity release.

Releasing equity can be a valuable financial tool for some people. Still, it is essential to understand the risks and drawbacks before deciding. If you are considering, it is vital to seek independent financial advice.

We are regulated advisers and are proud to be a member of the Equity Release Council, who have a set of rules and statement of principles that advisers adhere to 

 Contact us today, and we help you decide if Equity Release is right for you.