According to Standard Life Home Finance, which collated 503 responses from those aged 55 and over who have considered equity release and those who have taken out a plan, around 29 per cent of those whose income was over £60,000 per year would offer financial support to friends and family.
This compared to 15 per cent of those whose incomes are up to £20,000.
Overall, the most common reason for taking out an equity release plan across all incomes was to “age-proof” their homes.
Around 43 per cent of those with an annual income of up to £20,000 used equity release for the above purpose, compared to 31 per cent whose annual income was over £60,000.
The report added that 42 per cent of those with an annual income of £60,000 or more used equity release to repay mortgages, compared to 33 per cent of those with under £20,000.
There was also a difference with inheritance tax planning, with 18 per cent of those earning £60,000 or more versus one per cent of those on £20,000 or less.
Almost one in five potential customers said that they would wait until conditions were more favourable and eight per cent were considering their options. Around three per cent had done initial research and would revisit when funds were required.
Interest-only mortgage repayment
Potential customers were more likely to repay an interest-only mortgage, 17 per cent versus 14 per cent, estate planning, 10 per cent versus seven per cent, and extra monthly income, 15 per cent compared to 14 per cent, than actual customers.
Kay Westgarth, director of sales at Standard Life Home Finance, said: “Equity release has always been a multi-use product with customers often choosing to use their housing equity to fulfil a range of needs and desires.
“The Lightbulb Moment research highlights the positive impact that these products can have on people with a range of incomes.”
She added: “Whether you are wealthier and want to support your loved ones or less affluent and looking to clear your unsecured borrowing and boost your income, there are many options and product flexibilities.
“As we start to see green shoots in the market with lower rates, higher LTVs and better product availability, we anticipate that the 30 per cent of people who put off making a choice will once again consider whether equity release is for them.
“The first step is to speak to a specialist adviser who will not only discuss all the features of modern equity release but also continue to encourage more consideration of other options such as retirement interest-only mortgages, downsizing or accessing other sources of funds.”
