Equity release is increasingly being used to pay off other mortgage or loan debts, LV= research shows.
Last year 19% of those taking out equity release primarily used the money to settle other debts, up from 15% in 2016.
For a decade the most popular reason for taking out equity release has been to pay for home and garden improvements, with a third (31%) of applicants releasing equity for that reason in 2017.
Mike Farrell, protection and equity release sales director at LV=, said: “We continue to see people using the equity in their homes to make their lives more comfortable through home and garden improvements.
“However, we are increasingly seeing people use their property to provide additional financial security in their retirement; whether that’s simply for additional peace of mind or to help them cope with an unexpected financial shock.
“With people spending longer in retirement, and someone’s largest asset often being their home, advisers should consider what role equity release can play in clients’ retirement planning.
“Many households are still under financial pressure so people are increasingly looking to access money tied up in their property to provide additional income.”