Rising retiree divorce rates driving equity release
Rising numbers of customers are increasingly women looking to use property wealth to stay in the family home as many will struggle to raise money for deposits for new houses.
Rising divorce rates among the over 55s are increasing sales of equity release, with growing numbers of women applying for plans, according to research from Bower Retirement.
It is seeing increased applications from divorcing couples with women increasingly using equity release as a solution to help one partner remain in the family home.
Government data shows women aged 55-plus are the only age group to see divorce rates increase in the past 10 years in the face of numbers divorcing and the divorce rate falling to a new low.
Analysts say the rise in divorce among over-55s women is partially driven by increased financial independence among women who are now more able to support themselves following divorce. Other reasons for the rise in divorce include increased longevity.
Andrea Rozario, Chief Corporate Officer at Bower Retirement, said: “Rising numbers of customers are increasingly women looking to use property wealth to stay in the family home as many will struggle to raise money for deposits for new houses.
“Equity release can help divorcees split an estate without having to lose the family home entirely while enabling the other partner fund a deposit for a new home.
“Indeed, while there have been developments in the mainstream mortgage market allowing older borrowers more flexibility, it is still problematic for the older generation facing divorce to secure mortgages.”