15% using equity release to pay off mortgages or debt

One in seven (15%) are now using the money to pay off mortgages, loans and debts – up from 9% in 2015.

Home and garden improvements continue to be the main reason why customers release equity from their homes. Three in ten (31%) chose to spend the majority of their money in this way in 2016 and it has consistently been the most popular reason for taking out the product since LV= entered the market in 2008.

Vanessa Owen, Head of Retirement Solutions Products at LV=, said: “We continue to see people using the equity in their homes to make their lives more comfortable through home improvements. However, last year we also noticed a significant increase in those relying on the money from their property to meet financial commitments like loans and debts.

“We know many UK households are still feeling the squeeze and equity release can be a popular way for clients to ease financial pressures. In fact, equity release lending surpassed the £2 billion mark for the first time last year. LV=’s Flexible Lifetime Mortgage allows your client to borrow a lump sum with guaranteed access to further withdrawals if they need it, and our LumpSum+ product provides a cash amount for a specific expense.”