Married couples are the most common lifetime mortgage borrowers (42%) and single men are the least likely group of customers accounting for less than one in four (23%), despite also seeing a rise since 2016.
The trend is driven by a variety of factors including women often having lower pension savings than men, and rising divorce rates amongst over 55s.
On average women take £88,000 from the equity in their homes to boost their retirement income. OneFamily research revealed that women over 55 have saved £70,000 for their golden years but hope to have an annual retirement income of £20,000, leaving them with a significant gap to cover.
With a retirement life expectancy of 20 years, if they retire at 66 and live until 86, and with a maximum of £8,500 a year coming from a state pension, they will need three times this amount. By taking equity out of their homes they are getting much closer to their retirement income expectations.
Nici Audhlam-Gardiner, Managing Director of Lifetime Mortgages at OneFamily comments:
“It is heartening to see more women are becoming confident to take advantage of the wealth locked up in their properties. Many lose out on opportunities to save more for retirement, as they are the primary caregivers, taking career breaks to raise children or care for an ill or elderly relative, and so inevitably, end up with less money for retirement.
“A lifetime mortgage means they can access the equity in their home, gaining an additional income, which they can then use to enjoy their retirement.”
