What are the top reasons clients are releasing equity?

The reasons for releasing equity are wide ranging across the industry, but what are the top reasons we’re currently seeing at Royal London Equity Release? *

1- Home improvements (27.7%)

Clients may choose to make home improvements to fit their tastes, but in later-life they may also make changes to suit their needs. This could be because of health issues, meaning they need it to be more accessible, or sudden unexpected circumstances meaning that they need to provide for others, such as children and grandchildren.

2- Mortgage repayment (21.4%)

Mortgage repayment is a popular use of equity release- over a fifth of our customers seek to pay off an existing mortgage in later life.

3- Holidays and large purchases (20.5%)

Many homeowners may seek to unlock their property wealth while they can still enjoy it, making the most of their time in retirement.

4- Early inheritance (8.0%)

The accessibility of buying a first home is decreasing, and the dependence on the ‘Bank of Mum and Dad’ means that more homeowners may be opting to take out equity to help their children and grandchildren fund a deposit.

5- Supplementing income (7.1%)

Having the extra boost of tax-free cash could potentially be an attractive option for clients looking to boost their income. However, this will depend on their financial circumstances.

6- Unsecured debt (7.1.%)

Client’s may have unsecured debts with high interest rates and could consider using equity release to pay them off, potentially reducing financial stress.

Why is this important to you?

Knowing why your client is releasing equity is important for many reasons. Most importantly, it means you can offer them more personalised advice, but also you can:

• Adopt these reasons into your personal marketing.
• Make sure that your clients aren’t being coerced into making any decisions unwillingly
• Decide whether equity release is actually going to help them reach their goals.

Understanding the latest trends is integral to knowing how to improve your business. As an adviser, you are dealing directly with your clients, so by grasping what they want, you can help homeowners to find the right solution for them and their families.

Have any questions? Talk to our Business Development Team today!

*All percentages are taken as an average of Royal London Equity Release data between 01/01/2024 until 31/10/2024.