More Equity Release Schemes Used to Help Family Members
There are many ways that an equity release scheme can benefit retired homeowners but it is not limited to just them. This is because an increasing number of equity release schemes are used by parents and grandparents to help out their family.
In the first three months of this year, retired homeowners over the age of 65 years old released £217million worth of equity from the value of their homes. According to information from Age Partnership 7.39% of all schemes released through them were done so to help family members. This increased on the percentage in the last three months of 2009 as helping out family in the difficult economic climate becomes a growing trend.
Helping Family is a Growing Trend in the Equity Release Market
The economic climate has hit many people and families hard, this has made equity release schemes a viable avenue for many homeowners wanting to see their children – and even grandchildren – remain prosperous as well as benefitting themselves.
In the last three months of 2009, 6.63% of equity release schemes taken out through Age Partnership were used as gifts for family members. This was slightly down on the three months prior to that but the start of 2010 has returned to a growth in this trend.
Dan Baines, Sales and Marketing Director for Age Partnership said: “These figures show how equity release schemes are becoming a more family affair. By releasing equity from the value of their homes, many parents are helping their children and grandchildren through a difficult economic time.
“Helping children get onto the property ladder seems to be a particularly popular reason for raising capital. This is likely to be a consequence of the large deposits that are now required for may first-time buyers.”
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