Over three in five (61%) UK homeowners have expressed an interest in releasing money from their home in later life in order to meet a range of financial needs, the Equity Release Council (ERC) has found.

These results come from the ERC’s ‘home advantage’ study of 5,000 UK adults’ financial attitudes and experiences.

The council said that this figure has risen since 2021, when 57% of people responded with the same answer.

With more mortgages running beyond people’s state pension age, the ERC found that just 26% of homeowners have ruled out the idea of accessing money from their homes when they are older.

Almost two in five (39%) believe that it is more common and acceptable to have a mortgage in later life, with both measures increasing from 34% since 2021.

Furthermore, almost half (46%) of homeowners aged 55 and over now see property wealth as a means of satisfying later life needs.

The survey revealed that there is an even stronger appetite among younger homeowners to release equity, with three in four (75%) below the age of 55 being open to leaning on their property wealth in later life.

The biggest shift in attitudes since 2021 has been among the 35-44 year olds, with 78% interested in accessing money from the value of their home in future, up from 67%.

Among homeowners aged 55, which is the age when they can access property wealth via equity release products, key motivations for releasing money from their homes include the desire to pay for care at home (17%), boost their retirement income (16%) or to fund travel plans (15%).

Another priority for these homeowners is providing financial wellbeing for younger family members, with nearly one in seven (14%) stating that they are interested in ‘giving while living’ by gifting money from their property wealth to family for a deposit towards their first home, while 13% are looking to gift money to younger family to reach other financial goals.

Chief executive officer at the Equity Release Council, Jim Boyd, said: "In an ideal world, most people would retire with a mortgage-free home and a substantial pension but that is not the reality of modern Britain. People are choosing products such as ultra long mortgages out of necessity as the lower repayments allow them to purchase a home, save into their pensions and finance their day-to-day living expenses.

"The rise of products such as ultra long mortgages highlight the changing relationship people have with property wealth as it is increasingly being seen as an asset rather than simply bricks and mortar. Almost half of over-55s see property wealth as a means to meeting later life needs and the younger generation is even more wedded to this approach.

"We need to support people look at all their options when it comes to funding retirement whether it is pensions, property or investments. One size does not fit all. Encouraging people to have realistic conversations will provide more people with the type of retirement they want and need."

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