Majority of equity release customers will involve family in decision – Key

Sixty-four per cent of equity release customers consult their family before moving ahead with accessing the wealth in their property, according to new research carried out by Key.

The equity release adviser’s findings also showed that just 4% of customers had said their family was sceptical about their plans.

As part of the advice process, specialist equity release advisers actively encourage people to speak to their loved ones as this makes estate planning easier and a proportion of the equity released is often used for gifting.
 
According to Key’s latest research, the most common reason people chose not to involve their family or friends was not due to concerns about their decisions, but rather “because it is none of their business” (29%). Furthermore, 2% did not mention it as they did not want their families to feel guilty as they were looking to use the equity to help them, while just 4% said that they did not mention it as they felt their family may react negatively.

Key CEO, Will Hale, commented: “Discussions around inheritance or the financial position of older relatives can often be something that families avoid but as part of the equity release process, we actively encourage people to consult their nearest and dearest on the options being considered.

“It is great news that almost two-thirds are happy to have this discussion but we would certainly be keen to see this proportion increase – especially as one in five use the proceeds of equity release to support relatives.”
 
The findings, based on responses from 605 equity release customers, also indicated that 22% of people have used all or part of the equity released to support their families or friends over the last nine months, with Key reporting £605m recycled and ploughed back into the economy.

Providing an early inheritance (62%) was the most popular reason for giving, followed by help with a house deposit (51%) and helping with debt repayment (9%).
 
“Far from being the preserve of the wealthy, inter-generational wealth transfer or gifting is becoming far more commonplace as people increasingly realise the impact of a timely boost to the finances of children and grandchildren,” Hale added.

“Naturally, people need to ensure that providing a gift doesn’t damage their own financial security which is something that a specialist adviser will discuss with them. However, the use of housing equity can be a pragmatic way for many people to achieve this objective.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.