Equity Release More Popular Amongst Parents
Research from Key Retirement Solutions (KRS) has indicated that 85% of the equity release market is made up of parents, dispelling the myth that such schemes are only used by homeowners without children.
The research also indicates a growing understanding of the market amongst offspring as nine in ten parents consulted their children before taking out an equity release plan.
More Parents Involve Children in Equity Release Discussions
Of the 1,761 customers interviewed that took out an equity release plan with KRS in 2009, 90% consulted their children first which confirmed a 10% rise compared to similar statistics taken in 2004.
Lifetime mortgages are generally considered to be the most popular type of equity release schemes and features such as no-negative guarantees – meaning you will never owe more than your property is worth – have helped build trust in the market.
In fact a fifth of 25-34 year-olds expect to use a lifetime mortgage or similar type of equity release scheme in their retirement to support income according to AXA.
Considerable Changes in Attitude Amongst Children Towards Equity Release
Dean Mirfin, Key Retirement Solutions group director, said: “The figures reveal that those releasing equity are doing so not only with the knowledge of their children but also with their support to do so.
“We have seen considerable changes in attitude amongst the children of those who look to release equity from their homes and we actively encourage their involvement throughout the advice process. The fact that many plans now also offer inheritance guarantees is also providing comfort for those parents who hold this as a priority, making the decision to release equity more agreeable.”
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