Press release

LV= figures show large increase in number of people using equity release to pay off debts and mortgages

An increasing number of people aged over 65 are using equity release products to pay off debts and mortgages.

Customer data from LV= shows that 27% of customers in 2019 used equity release to clear their mortgage, loans or debts compared to 15% in 2016. 

Helping family and friends has risen from 8% to 16% during the same period while home improvements fell from 32% to 24%. The figures also show that a larger proportion of women (55%) take out equity release plans than men (45%).

How LV= customers use equity release

Year

To clear mortgage, loans or debt

Home & Garden improvements

Treats / to help family and friends

To top up current income

2016

15%

32%

8% 25%

2017

19%

31% 11% 20%

2018

29%

26% 14% 15%

2019

27% 24% 16% 13%

Year

To clear mortgage, loans or debt

Home & Garden improvements

Treats / to help family and friends

To top up current income

2016

15%

32%

8% 25%

2017

19%

31% 11% 20%

2018

29%

26% 14% 15%

2019

27% 24% 16% 13%

Since 2002, LV= served 14,183 equity release customers and lent £1.18bn. 

Georgina Oxton, Strategic Sales Manager at LV= said: “Over the past four years, the equity release market has grown significantly as more versatile products have been introduced to meet changing requirements of customers

“However, it is striking how the reasons why people are using equity release are changing. With pension income often being less than hoped for and high levels of consumer debt, an increasing proportion of customers are using the equity in their homes to pay off loans and outstanding mortgages. For customers with interest-only mortgages having no means of repaying them, equity release would be one option as people have the added security of still living in their home until they die or go into long-term care. 

“Helping grandchildren with deposits for their first home or the costs of higher education are just some of the reasons why an increasing number of our customers use equity release to help friends and families.

“Equity release is proving popular with women for a variety of reasons. More women are retiring with relatively small pensions due to the fact that they generally live longer than men, earning lower wages and rising divorce rates for the over 60s.”

 

For more information please contact:

David Gwyer
Media Relations Manager – Life and Pensions
020 7634 4311
07798 796907
Candice South
Press Officer, Life & Pensions
020 7634 4497
07867 141547

About LV=

LV= is a leading financial mutual. and serves over 1.3 million members with a range of financial products. When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products. 

LV= and Liverpool Victoria are trademarks of Liverpool Victoria Financial Services Limited (LVFS) and trading styles of the LV= Group of Companies. LVFS, registered in England with registration number 12383237, is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, Registered number 110035. Registered address: County Gates, Bournemouth BH1 2NF.