One in three retired homeowners have released property wealth to help family with house deposits, research from national equity release adviser Bower Retirement has found.
Nearly one third of clients use some or all of the cash released in this way, which represents a shift in how people are using property wealth.
However, the main uses for money drawn down from the property are clearing debts and increasing retirement income, according to the Bower research.
Around 80 per cent of customers are clearing mortgage debts while two out of three (65 per cent) use the cash to boost retirement income and around 55 per cent say clients pay off credit cards.
The study found one in five use property as an early inheritance gift, pointing to an increasingly crucial role for property wealth in family finances.
Thanks to rising house prices, clients are able to release around £75,000 each time, according to Bower’s data.
Objections from family remains the greatest barrier to customers going ahead with equity release.
Andrea Rozario, chief corporate officer at Bower Retirement said: “Retired homeowners clearly want to be able to help families and are increasingly doing so as the equity release market expands.
“The only concern is that customers may be risking their own long-term finances by using money to help family. Independent expert advice is crucial to ensure that customers make the best possible decision for their own finances.”
