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Wednesday 28th of April 2010
April 26, 2010    

One-third of equity releasers pay off mortgages

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by Gill Montia

How do equity releasers use the funds they have raised? Bridgewater Equity Release claims to have the answer, having analysed the main reasons why people apply for its home reversion plan.

Surprisingly, 30% of those questioned were planning to clear the mortgage, while just over 17% had home improvements in mind.

With the data collected over the past three years, debt consolidation emerged as the third most common motivator in 2009 - the number of customers releasing capital to sort out their borrowings rose to 15%.

The proportion of applicants wanting to purchase a specific item such as a new vehicle also rose last year, to over 10%.

Holiday homes have been another emerging trend, with 6.5% of customers intending to invest the money in an additional property last year, and the same proportion intending to use the money to increase retirement income or enhance their lifestyles.

Finally, in 2009, none of Bridgewater’s applicants planned to use equity release to provide an emergency fund or to fund long-term care.

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