Retired homeowners are using the value of their homes to help families through the recession, according to equity release adviser Key Retirement Solutions.
Analysis showed that 31 per cent of pensioners used property wealth to help their families in the first six months of 2012, compared with 23 per cent in the same period of 2011.
Over the same period the numbers using property wealth to clear their own debts dropped to 25 per cent from 31 per cent.
Key Retirement Solutions also said that total lending in the first six months increased 15.7 per cent to £446.21 million from £385.68 million and would have topped £630 million if £185 million of untapped drawdown funds which have yet to be released are added in.
Plan sales rose 10.7 per cent to 9,288 in the six months compared with 8,387 in the first six months of last year.
Drawdown sales made up 65 per cent of total sales in the first half compared with 55 per cent for the whole of 2011.
Dean Mirfin, group director at Key Retirement Solutions said: “Retired homeowners are putting families first as the recession continues to squeeze finances across generations.
“Helping out family is a powerful motivation for elderly homeowners and it is striking that they feel financially secure enough to help families before themselves and are under less financial pressure from their own debt.
“The equity release market is firmly back on the growth track with total values released up 15% in the first half of the year while sales of plans are also well ahead of 2011. The ongoing innovation in the market is driving growth with drawdown taking a crucial role.”
