The profiles of the three age groups show how the balance of priorities shifts from clearing mortgage debt for the 55 to 64s, to gifts to family and refinancing equity release in the 75-plus age range.
The research compiled reasons for taking equity release among all of Hub’s customers in 2020.
Among 55 to 64s, paying off the mortgage was the biggest reason for releasing equity, at 29 per cent. This group also often released cash for home improvements 16 per cent of the time.
In the 65-to-74 age band, clearing mortgage debt and gifts to family were level-pegging at 18 per cent of borrowers. Some 19 per cent of this group used the money for home improvements.
Clearing debt other than mortgages was a spending priority for 12 per cent of customers across 55-to-64s and 65-to-74s.
For customers age 75 and over, 27 per cent were refinancing existing equity release loans. A further 23 per cent were gifting to family and 14 per cent improving their homes. Some 13 per cent were clearing mortgage debt.
“This data reveals the varied and changing priorities of equity release customers and illustrates general trends. No two customers’ circumstances are the same, so it’s essential for them to receive personalised advice,” said Simon Gray, managing director at Hub Financial Solutions.
“Unlocking housing wealth isn’t the right solution for all customers and that’s why they must receive regulated advice,” he added.
