Family members taking out equity release helped 46 first-time buyers a week onto the housing ladder in 2018, Canada Life Home Finance has found.
The company estimated that one in 34 (2.9%) of the 82,791 equity release customers in 2018 used the money to help first-time buyers secure a home.
Alice Watson, head of marketing and communications at Canada Life Home Finance, said: “The equity release market continues to grow, as more people approaching or in retirement become open to the benefits these products can offer them and their families.
There was a slight increase in the percentage of customers who unlocked the value of their home to support first-time buyers in 2018 compared to 2017, 2.9% compared to 2.6%.
Home improvements remained the most popular reason to take out equity release in 2018, with almost half (48%) of customers putting the money towards enhancing their home and garden.
Watson added: “The younger generation can also benefit from the fact that equity release is often used to enhance people’s existing properties.
“Though this is a less direct means of support, home improvements increase the value of the property, meaning there is likely to be a larger pot of money available in future that could be drawn on to provide a much-needed deposit or a living inheritance.”
If you would like to explore the possibilites and suitability of equity release for you and your family please contact us. One of our team of highly experienced equity release advisers will be happy to meet you in the comfort of your own home to discuss your requirements.