"With an average £75,000 being released each time there is more scope to help families and there is increasing need for support when it comes to house deposits."
31% of clients used some or all of the property wealth they released to help their families fund house deposits.
However clearing mortgage and credit card debts and increasing retirement income remain the three most popular uses of money raised by Bower's customers. Around 80% of customers are clearing mortgage debts while two out of three (65%) use the cash to boost retirement income while around 55% say clients pay off credit cards.
Advisers however warn that objections from family remain the biggest barrier to customers going ahead with equity release. Around 69% of advisers say issues with family is the biggest barrier for clients compared with just 31% of advisers who say clients are concerned about interest rates.
Bower believes that the growth in retirement lending and equity release plus the launch of plans allowing different generations of a family to service loans can help address this issue.
Andrea Rozario, Chief Corporate Officer at Bower Retirement, said: “Retired homeowners clearly want to be able to help families and are increasingly doing so as the equity release market expands
“Clearing debts and enhancing retirement incomes remain the key priorities but with an average £75,000 being released each time there is more scope to help families and there is increasing need for support when it comes to house deposits.
“The only concern is that customers may be risking their own long-term finances by using money to help family. Independent expert advice is crucial to ensure that customers make the best possible decision for their own finances.”
