The firm compiled data over the last 12 months by asking customers taking out a partial reversion, a reversion that does not release the maximum equity from a property, their reasons behind taking out a plan.
Overall, 43% said they had taken out a partial reversion in order to release equity for home improvements with other popular reasons including wanting to repay a mortgage, fund travelling and purchasing a car.
The top ten reasons behind a partial reversion were:
1. For home improvement – 43%.
2. Repaying a mortgage – 25%.
3. To fund travelling – 21%.
4. Buying a car – 15%.
5. To pay for the plan set-up costs – 15%.
6. To provide a gift – 13%.
7. To have an emergency fund – 6%.
8. To ensure additional income and maintain their lifestyle – 6%.
9. To purchase a holiday home – 4%.
10. Debt consolidation – 4%.
The survey also found customers releasing equity in this way to purchase a boat, buy a motorised wheelchair and fund a divorce.
Peter Welch, head of sales and distribution at Bridgewater, said the survey showed that partial reversions were useful in a wide range of circumstances.
“As can be seen from the reasons given by customers, there are a whole manner of ways customers are using their accessed equity to fund smaller purchases, improvements to their homes or to have funds available should an emergency arise.
“Flexibility is absolutely key here and this data goes some way to proving that releasing a smaller amount of equity is compatible with funding lifestyle choices.”