Of those surveyed, two reasons ranked level in the most common uses for equity release, with 27% of respondents citing improvements to the house and garden and taking out a loan to clear their existing mortgage.
Some 18% of respondents said consolidating debts was their motivation for taking an equity release mortgage, the third most popular reason to take out the loan.
Alice Watson, head of marketing at Retirement Advantage Equity Release, said: “As equity release grows rapidly, customers are finding they can use it for a diverse range of reasons. This bodes extremely well for the future, as property wealth establishes itself firmly as part of retirement planning alongside pensions and other assets.”
Using equity release funds for a holiday accounted for 13% of borrowers while contributing towards daily living expenses represented 14% of those surveyed.
Gifting cash to family members and buying a car both accounted for 9% of those surveyed. Purchasing a property accounted for 7% of respondents.
Watson added: “It’s always fascinating to see the breadth of uses customers have for the funds they unlock from their properties. It is encouraging evidence that retirees are thinking holistically about the role of property wealth alongside other assets to live the lives they want. Especially as evidence suggests that for many, their property will be worth more than their pension.”