Equity Release funding the “Bank of Mum and Dad”

Many people still consider Equity Release a “last resort” however an increasing number of people are choosing this route to help other family members. There is a mindset that “they will get it in the end anyway” so many parents are considering Equity Release as a way to provide their children the financial support they need at the time when they actually need it, rather than waiting until inheritance is due. The trend is demonstrated in the following article:

  • ‘Around 24% of people who released equity in 2016 used the money to help family or friends, according to Key Retirement, a leading firm in the sector. Often this will take the form of cash given to younger family members to help towards a deposit, or to help with the cost of a wedding or university.’

(The Guardian – January 2017).

https://www.theguardian.com/money/2017/jan/28/is-equity-release-good-way-pay-off-interest-only-home-loan-capital

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