Women More Generous Than Men with Equity Release Capital, Data Suggests

There is an interesting disparity between the way in which male and female equity release customers choose to allocate their funds upon releasing the equity tied up in their homes. That is according to new data released by HUB Financial Solutions, which suggests that single women who raise money through equity release are significantly more generous with their subsequent capital than anyone else.

Specifically, it was found that single women raising money through equity release allocated a full quarter of the proceeds to gifts for friends and family. Single men in the same position were not found to be nearly as generous, allocating on average 13% of the money they released to the same gestures of generosity.

HUB Financial Solutions’ figures (collated from data collected during the first nine months of the year) also indicated that 50% of male equity release customers had financial motivations in mind when applying, such as restructuring debt or increasing their income.

Single male applicants were also found to be more likely to spend more of the funds raised on paying for divorce costs than women, a full 9% of the entire equity released, compared to just 0.5% with single female applicants.

Home improvements remain popular

As has typically been the case, there was no major gap between the number of men and women allocating equity release funds to home improvements. Around 11% of single male applicants intended to improve their homes with the money raised, with 13% of single women indicating the same intent.

A larger disparity was noted with vehicle purchases, however. Single women were found to have spent an average of 3% of their equity release funds on cars, compared to 5% with single men.

Speaking on behalf of HUB Financial Solutions, managing director Simon Grey commented on the growing popularity of using equity release funds to offer cash gifts to family and friends.

“Gifting is a key reason why many people use equity release. The money could be used to help their children or grandchildren finance a deposit on a property, to support friends and family through financial difficulties, or to contribute to tuition fees,” he said.

“It will be interesting to see over the coming months whether the priorities of equity release customers begin to shift as the country continues to deal with the coronavirus pandemic and the impact on people’s personal finances and those of their families becomes clearer.”

Assessing suitability

As equity release continues to grow in popularity, experts are warning prospective applicants not to make any major financial decisions without first seeking expert advice. Consulting with an independent broker, such as UK Property Finance, is particularly important to assess suitability for equity release and compare the market for a competitive deal.

Equity release is not for everyone, though it can represent a real financial lifeline for those who are asset-wealthy but cash-poor. Use our UK mortgage calculator to find out more accurately what you’ll be paying.