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| Bridgewater Equity Release reveals reasons to release equity Bridgewater Equity Release, the UK's home reversion specialist, has revealed the results of its analysis of the main reasons why a customer opts for a home reversion plan and the uses the released equity is put to. As part of its customer application form, Bridgewater provides 15 options and asks the customer to choose the one which they plan to spend the majority of the released money on. Bridgewater has analysed its completed applications over the last three years which has revealed the top reasons why customers are opting to release equity through a home reversion plan. The top three options chosen over the last three years were: 1. Repayment of the mortgage – in 2009 almost 30% of all customers were planning to use the released cash to do this. 2. Home improvements – this option has increased in popularity over the last three years increasing to just over 17% in 2009. 3. Other debt consolidation – the numbers using their released equity to consolidate debts fluctuated over the three years but increased to 15% last year. Other popular reasons given for what the money would be spent on included the purchase of specific goods, for example, the popularity of purchasing a vehicle almost doubled between 2008 and 2009 with over one in ten customers choosing this option. Also 6.5% of customers intended to use the money to either buy a holiday home or property, when no-one used the money for this purpose back in 2007. Using the money to increase retirement income or enhance their lifestyle was an option with a similar level of popularity; 6.5% of customers chose this option in 2009. Using the money to travel fell in popularity last year as did the gifting of money to others while the fact that no customers used their equity as an emergency fund or to fund long-term care in 2009 suggests the cash is often used for more short-term measures. Bridgewater, however, fully anticipates an increase in the number of individuals using equity release to fund their long-term care needs in the years ahead as state funding changes and social care policy is reviewed. write your comments about the article :: © 2010 Construction News :: home page |