Eight in 10 (83%) Moneywise.co.uk users would avoid equity release to free up cash in their home, according to the results of our latest poll.
More than half (57%) of users said they would rather sell their property and downsize, while just over a quarter (26%) said they wanted to leave their property as an inheritance.
Equity release is a kind of reverse mortgage on your house. The maximum loan-to-value ratio depends on the borrower's age, but it can be as high as half the value of the house for those over 80. However, the interest on the loan typically ‘rolls up’ - so interest accumulates on interest added to the loan - but no loan repayments are due until the borrower dies or moves into long-term care.
According to the Equity Release Council, equity release lending in the UK surpassed £2 billion for the first time in 2016.
Just 6% of those polled said they are using or planning to use equity release to improve their lifestyle, while 11% are only using or planning to use equity release as a last resort.
A further 1% said they’re planning to use equity release as they need the money for essentials.
See the full poll results below.