According to research from Santander, over a third said that they would access the money to boost retirement finances, with 23 per cent saying they would use it for home improvements.
Around 15 per cent would use some of the equity in their home to help their own children onto the property ladder.
The research continued that 29 per cent were worried about understanding the costs of equity release, with 27 per cent concerned about their children having nothing to inherit.
Around 24 per cent were worried about owing more than the property is worth if they released equity through a later life mortgage.
One in five said that they were worried about using an “unreputable company” and one in 10 did not know where to go to for advice.
It comes as the lender has extended its partnership with Legal and General to widen access to later life lending options.
From today, Santander will contact customers who it believes are eligible for later life lending options from Legal and General and offer more detail about options available with the partnership.
Customers can contact Santander’s mortgage team to talk about their current circumstances and what their goals are with later life lending, and if appropriate they will then be introduced to Legal and General’s advisers.
Aaron Shinwell, chief operating officer for the homes division at Santander, said: “Looking at options to manage money into retirement is increasingly important in today’s society and as a major mortgage lender, we know that many customers are keen to understand how they can make the equity in their property work best for them.
“Since 2016, we have partnered with Legal and General to help customers access the equity within their property, and we’re pleased to open this support to all mortgage customers aged over 55, to help them understand and access the choices available to them in later-life.”
Craig Brown, chief executive officer at Legal and General Home Finance said: “With almost eight years in collaboration, we are excited to be expanding our partnership with Santander, offering lifetime mortgage solutions to more customers.
“Over the years, we’ve seen a growing demand for later life lending products, which we expect to continue, in line with high values of property wealth and changing retirement needs. We’re dedicated to making sure that both customers and advisers are supported and that customer outcomes are at the front and centre of every process.”
A lifetime mortgage can offer benefits such as tax-free cash, release equity when needed, no regular payments, optional repayments and no negative equity.
Jim Boyd, chief executive of the Equity Release Council, said: “We know that the myths surrounding equity release, and lifetime mortgages may be putting people off exploring products that could help unlock their finances into retirement, and it’s our role to make sure that the industry presents the facts and holds itself to the highest of standards for customers.
“It’s great to see Santander and Legal and General, both members of the Equity Release Council, acting in partnership to bring trusted advice to a wider range of customers, and making sure they are fully informed about the choices available to them.”
