One in eight use the extra cash to fund divorce or buy out an ex-partner
Almost one in five customers use equity release for home improvements
Figures from Saga's Equity Release service have revealed that just under one in eight people (12%) opting for the service do so in order to fund a divorce settlement or buy-out an ex-partner. This startling discovery indicates that getting a divorce is one of the top reasons for people over the age of 60 to choose equity release.
The research uncovered that the most popular reason for using the service is for home improvements, with over one in six (18%) customers using the cash to decorate or renovate their living areas with the extra income. The older generation may find that with the arrival of grandchildren, their homes need to be made more child friendly, or it could simply be a matter of changing taste and a desire to revamp their surroundings.
The second most popular choice for using equity release was to improve their lifestyle (13%). These improvements range from travelling around the world, to dining out more often. Looking after children and grandchildren were also cited as reasons to release equity from their home, with 6% using it for this purpose. Other more traditional reasons, like wanting to clear the mortgage, were also popular with a further 12% using it in this capacity.
This research shows that the reasons that drive people to consider equity release are incredibly varied and demonstrates the importance of seeking specialist financial advice.
Figures based on actual reasons stated by customers who have used the Saga Equity Release Service in 2007.
Advice service is available for people aged 60 and over.
A cash lump sum and/or income from an equity release scheme may reduce the consumer's state benefits.
An equity release scheme will reduce the value of the consumer's estate.
The Saga Equity Release Service is provided by Just Retirement Solutions.
For more information, please contact:
Group Communications Manager
Tel: 01303 776504