New figures have revealed the extent to which the Bank of Gran and Grandad is helping first-time buyers get onto the housing ladder through equity release.
Retirement Advantage has estimated that in the first half of 2016 32 first-time buyers were helped onto the housing ladder every week as a result of an equity release product.
The figures reveal the extent to which older family members are using equity release to gift to younger relatives in this way.
Retirement Advantage said that in the first half of the year 7% of their customers purchased an equity release product so that they could help a first-time buyer.
Over the same period, statistics from the Equity Release Council show that there were 11,846 new equity release customers nationwide.
By applying their experiences across the UK, Retirement Advantage estimates this equates to 32 people week securing a first-time home thanks to equity release.
Alice Watson of Retirement Advantage said: “In recent months and years the reasons for buying equity release have diversified with real fervour. Perhaps the most striking development we’ve seen so far this year is the proportion of customers telling us they want to unlock some of the wealth in their property to help a family member get onto the housing ladder. If you apply this trend across the country, it’s no exaggeration to say that equity release is making a significant impact on the ability of first-time buyers to own a property.
“It’s yet more concrete evidence that property wealth is now seen as a viable and flexible resource in retirement, alongside pensions and other pots of savings. The customers we deal with want to do something special like go on the holiday of a lifetime, help a grandchild buy a home, or simply have a bit more cash available to live more comfortably in retirement. They recognise that equity release can be the ideal vehicle to help them achieve this.”
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