According to new research from Stonehaven, 45.1% of their customers in London and the South East are now using equity release to pay mortgage debt.
The equity release provider found that nearly half their customers cited paying off their mortgages as the primary reason for taking out an equity release loan compared to only 27.6% in 2008.
They said the regional increases reflect a growing national trend, with on average four in ten equity release mortgages being used for this reason.
Georgina Smith, Managing Director, Stonehaven said: “Older homeowners with interest-only mortgages, who have an underperforming endowment or who do not have sufficient savings, face a worrying future.
“For older homeowners with substantial equity in their property but no other repayment vehicle and a fixed retirement income, equity release can be a way of solving their concerns.
“Cash can be unlocked from the equity in their property to pay off the mortgage and also allow the homeowner to remain in their home. Equity release products have come a long way over recent years and there are increasingly flexible solutions that meet changing financial requirements.”
