Last year, three quarters of the customers of UK-wide equity release broker, Responsible Equity Release, used some of the equity in their homes to help themselves or their families cope.
The broker said that 36% of customers used their equity to repay a mortgage, up 31% on the previous year. In most cases, this was either because of a shortfall in their endowment policies and other investment vehicles, or higher living costs, which left little surplus income to meet monthly mortgage repayments.
Meanwhile, 23% of customers (up 22% on 2010) used their equity to help struggling family members, whether to pay down their debts, support their incomes or provide the deposit required to buy a home.
16% of customers, up 2% on 2010, used their equity to create a cash surplus for the regular payment of rising utility bills.
The number of homeowners enquiring about equity release doubled during 2011. Last year, the total number of enquiries received by Responsible Equity Release rose by 91% on 2010.
Steve Wilkie, managing director, Responsible Equity Release, said: “In such a dire economic climate