Over a fifth of over-55s who used equity release in the last six months planned to use the money to pay off an existing mortgage.
Meanwhile, 17.9% of those quizzed were using the money for home improvements, making this the second most popular reason to release equity.
Debt consolidation was the third most common reason for equity release, with 13.7% of survey respondents revealing this as their reason.
This figure, was slightly higher in December, when it peaked at 18% in December 2022.
More and more people seem to be using equity release for home improvements, as this was the area which had seen the most growth in popularity in the last six months.
And gifting money has become an increasingly common reason to release equity too. In the last four months alone, gifting money that has been released through an equity release scheme has risen by 2%.
Mark Gregory, CEO and Founder of Equity Release Supermarket said he wasn’t surprised repaying a mortgage was the top reason for equity release.
“As interest rates and living costs continue to rise, borrowers will be looking for ways to reduce their monthly payments,” he said.
“By using an equity release scheme, such as a lifetime mortgage, to pay off your existing interest only mortgage you will no longer need to make monthly payments unless desired.
“This can help make monthly savings and alleviate financial pressures, especially for those who have seen their mortgage payments rise in recent months due to interest rates.”
He added: “In this uncertain economic climate, it is more important than ever that borrowers are getting advice on what product options are available across the whole equity release market.
“For anyone considering equity release, we would suggest discussing your plans with one of our equity release advisers.”
