"We have definitely seen a shift in the reasons why people are enquiring about equity release since lockdown started from the more traditional ‘enhance’ to ‘gifting’."
SunLife says it has seen an increase in the number of homeowners looking to release equity to help younger generations whose finances have been further hit by lockdown.
SunLife says the main reasons people generally opt for equity release are to enhance their own lifestyles - either by improving their homes or funding holidays and other large purchases.
Gifting does not usually make up the bulk of enquiries and is commonly used for weddings, university fees, and, perhaps most commonly, helping children buy their first home.
However older homeowners are now looking to use the equity in their homes to support loved ones who are struggling with added financial pressures due to the Covid-19 outbreak.
SunLife’s equity release director, Simon Stanney, said: “We have definitely seen a shift in the reasons why people are enquiring about equity release since lockdown started from the more traditional ‘enhance’ to ‘gifting’.
“I think with so many people suffering financially it’s understandable that older homeowners - who have built up equity in their homes and are in a position to help - will be looking to support family in any way they can.
“In many cases, the family home would be inherited by the children anyway; equity release allows the gifting of that money when needed.”
