Cost of living now a significant driver for later life lending
New data from lifetime mortgage lender Pure Retirement reveals that borrowers are turning to their property wealth to top up their day-to-day living costs.
The research from Pure Retirement looks at how equity release customers spend the tax-free cash they release. It shows that almost one-in-ten people accessing their property through equity release are doing so to pay for their day-to-day living expenses. This might include groceries, paying for household bills, transport costs and more.
The data is notable as this reason didn’t register in the top five reasons for equity release a year ago. It indicates that soaring inflation and the cost of living in recent years has led to some people accessing their property wealth to meet basic living costs.
Pure Retirement’s head of distribution Scott Burman spoke of the findings. He said: “Given the recent economic landscape, it’s perhaps unsurprising to see more needs-based borrowing taking place among those accessing cash releases or requesting additional funds.”