Changing equity release motivations in Scotland
The pandemic and ensuing lockdown forced many of us to adopt a back to basics approach to everyday life, a shift which has transcended to many people’s financial motivations too. For people choosing to release equity from their homes in 2020, different reasons emerged for doing so during the pandemic as a direct result of the strict lockdown measures imposed.
When lockdown measures were at their most severe, spanning Q1 and Q2, understandably, requests for lifetime mortgages to pay for international travel were down, whereas requests for loans to support day-to-day living increased to account for just under a quarter (22%) of equity release applications in Q2.
Funding home improvements continued to be the most popular reason to take out a lifetime mortgage in the first half of the year, accounting for 39% of all requests. As people took advantage of mortgage payment holidays, a 10% fall in requests for equity release to clear existing mortgages occurred.
As a wave of DIY mania swept the country, applications to fund home improvements increased to a total 9% of requests.
Mortgages on and equity released from your home will be secured against it.