Improving the value and quality of their home is the main motivator for 63 per cent of customers who take out an equity release plan, research has found.
According to analysis of the equity release market by Key Retirement Solutions, and the things people do with the money they unlock from their homes, property value has a lot to do with it.
For homeowners' whose property is worth less than £200,000, their biggest priority is home improvement.
After adding to the property's value and improving their home, the most popular use of the cash by homeowners in this group is paying off their debts and mortgage.
But, homeowners in the £200,000 or less bracket are also the most likely group to spend some of the money generated from equity release on a holiday – 40 per cent more likely than homeowners in any other property value bracket.
The study also revealed that homeowners with a property value of more than £750,000 are the most likely to be generous with the money they get from taking out an equity release scheme – a quarter in this group give some of the money away to their family.
"As anticipated, differences occur as a result of property value," said Dean Mirfin, Key Retirement Solutions' business development director.
"This analysis helps to further ensure that product design and advice continues to fulfil the needs of those looking to release equity from their homes and to cater for needs over time."
© Fair Investment Company Ltd