The research has found that equity release is being seen as a viable option for meeting routine living costs in later years. Rather than splashing out on luxury purchases, most surveyed would use the money to improve the quality of their everyday life.
Of those who aren’t considering equity release, most felt it was because they did not need the money, or had other sources of finance. And 21% would rather downsize their property to generate more cash. A lower number were either concerned about the debt incurred, or reluctant to reduce their child’s inheritance.
Bob Mottershead of Newcastle Building Society’s Equity Release Service said: Equity release has been the subject of a lot of bad press, but almost half of people seeing it as a possibility indicates it is becoming a mainstream option. It is clear that the work that has been done to regulate and re-educate on equity release is beginning to bear fruit. Add to this falling interest rates on equity release products and flexible options and the market is certainly set to grow.
