Two-thirds of parole borrowers see their families: key

According to a study by Key, two-thirds of equity release borrowers involve family or friends in their decision.

The lender found that only 4% of those who consulted with their family said their relatives and friends were skeptical about their plans.

Equity release counselors usually encourage borrowers to talk to loved ones before taking out a lifetime mortgage to help them plan their estate and avoid arguments or unpleasant surprises afterwards.

Among the three candidates who chose not to involve others in the decision, 29% said it was “because it did not concern them”.

More than one in five borrowers use some or all of the money released to support their family.

Providing an early inheritance (62%) was the most popular reason for giving, followed by help with the deposit of a house (51%) and help with debt repayment (9%).

More than a quarter (26%) provided financial support for other reasons ranging from help with school fees to family vacations and moving gifts.

Key Managing Director Will Hale said: “Discussions about the inheritance or financial situation of older parents can often be something families shy away from, but as part of the equity release process we encourage people actively consult their loved ones about the options being considered.

“It’s great news that almost two-thirds are happy to have this discussion, but we would certainly be anxious to see that proportion increase – especially since one in five uses the proceeds of the equity release to support loved ones.

“Far from being the preserve of the rich, the intergenerational transfer or gift of wealth is becoming more and more common as people increasingly realize the impact of a timely boost on children’s finances. and grandchildren.

“Of course, people need to make sure that giving a gift does not jeopardize their own financial security, which a specialist advisor will discuss with them.

“However, using home equity can be a pragmatic way for many people to achieve this goal.”

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