Independent equity release adviser Key has conducted research which establishes the strong role that retired homeowners are now taking on in order to help their children and grandchildren in purchasing a property.
The research from Key has shown that an increasing number of parents and grandparents are using their own properties in order to help younger family members onto the property market. Almost one fifth of mortgage advisers at Key had received enquiries from older customers with regards to selling holiday homes and buy-to-lets.
Will Hale, CEO at Key, said: “With advisers foreseeing a surge in first-time buyer enquiries, it’s clear that the property wealth of over-55s is increasingly playing an important role in tackling the intergenerational imbalance of property ownership.
“And it is really no surprise, given the fact that the average first-time buyer who wants to secure a good rate as they get onto the property ladder needs to find just over £25,000.
“That said, with the older generation often using their savings and pensions to help raise the deposit, there is a real possibility for this generosity to have a sting in its tail.
“Getting specialist advice which considers all options, including equity release, is vitally important to ensure that they make decisions which will benefit themselves and their families over the long term.”