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Sharing the wealth: Average gift to family with a lifetime mortgage is up by nearly £25,000 compared to last year

Posted in: Corporate

  • Average lifetime mortgage loan used to gift money to loved ones is now over £110,000, up by a quarter (28%) compared to 2018
  • Nearly one in five (18%) OneFamily lifetime mortgages are now used to give loved ones a financial gift
  • Lifetime mortgages are adding to the economy by enabling homeowners over 55 years old to spend funds that would have otherwise been tied up for years to come

OneFamily data shows that homeowners using a lifetime mortgage to support their loved ones financially are releasing over £110,000, up a quarter (28%) compared to 2018, when it was just over £85,000. Loans taken out to gift money to family are now the largest of all.

Nearly one in five (18%) of the mortgages taken with OneFamily in 2019 are for this purpose, as families make use of the substantial growth in the value of their property over the years. In many cases the money released will be put towards a deposit for children or grandchildren to get onto the property ladder themselves, as high house prices have left many of the younger generations unable to save up the deposit.

Another reason for parents and grandparents to pass on a potential inheritance early through their property, is in part due to the rise in life expectancy, which is causing wealth to move down generations at a much slower pace. Currently people aged 55 to 64 are the most likely age group to receive inheritance[i], which is when most people are typically more financially stable and less in need of the extra cash.

Nici Audhlam-Gardiner, Managing Director of Lifetime Mortgages at OneFamily comments:

“We know that for parents and grandparents seeing younger family members thrive financially, and in particular get on the property ladder is a milestone they want to see them achieve. Lifetime mortgages are increasingly enabling families to help each other and share their wealth over the generations, which in turn is helping boost the economy and the housing market. The range of lifetime mortgages also means that more homeowners than ever can access the funds in their property.

“We review each application on a case by case basis, meaning we are able to support on a wide variety of homeowners.”

To find out more about OneFamily Lifetime Mortgages visit:   

www.onefamilyadviser.com/lifetime-mortgages/