Five Top Reasons For Equity Release
Homeowners across the UK release equity for a whole number of reasons, whether it is about improving quality of life or managing debt. However, what are the five main reasons that people release equity from the value of their properties?
Repay the Mortgage
This remains the leading reason for homeowners to release equity. According to information from Age Partnership, 22.73% of equity release schemes taken out in the first three months of 2010 cited this as the leading reason.
Although this percentage is down on the 30.77% for the same period in 2009, it is still the main reason by some margin.
Debt Consolidation
Enjoying financial freedom is one of the key things that drives a desire to release equity so it is no surprise that debt consolidation comes in second with 19.32% of all plans taken out in Q1 2010.
Home Improvements
With more time to spend on the property, home improvements continue to rank highly amongst retired equity release customers. Over the past year this has been up and down with improving lifestyle often over-taking it. This perhaps reflects the small margin between the percentage of people releasing equity for home improvements (15.06%) and those wanting to improve their lifestyle (14.20%).
Improving Lifestyle
As already mentioned, improving lifestyle is important for many homeowners approaching, or already enjoying retirement.
Helping Out Family
Making the top five is helping out the family. Contributing 7.39% of all equity release schemes taken out in Q1 2010, helping the family remains popular despite a small drop from the same period in 2009.
So these form the five main reasons that people release equity, but there are numerous why people make the most of the money they have already invested into their property.
By consolidating your existing unsecured debts, you may extend the term and overall cost of these debts.
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