Clearing an existing mortgage, according to a survey conducted by Canada Life Home Finance, is the top reason for releasing equity on a property in the first half of this year.
More than two in five, 44 per cent, of borrowers used equity release in order to pay off an existing residential mortgage debt, in the first half of 2019. This was followed by borrowers releasing equity in order to make home improvements at 40 per cent.
The survey also shows that the total number of its customers releasing equity on their properties, in order to pay off an existing mortgage has increased from 44 per cent in 2016, to 46 per cent in 2019.
Canada Life Home Finance head of marketing and communications Alice Watson says: “While a large proportion of customers are looking to safeguard their financial future by paying down debts and increasing the value of their home, others are using equity release to improve their lifestyles, paying for home improvements and enhancing their quality of life now.
“As political, economic and social changes seem to be continuing at breakneck speed, we can be sure that the profile of the lifetime mortgage customer will evolve with the times.
“It is crucial that the industry remains alive to these developments and continues to offer customers the flexibility and security they are after.”