Data collected by the firm shows that in the 55-64 age group, 29% put their equity release cash towards paying off their mortgage, with a further 12% going towards clearing other debts.
Meanwhile, looking to customers aged over 75, 23% release equity in order to provide gifts to their family.
In addition, over 75s also allocated triple the amount of money towards refinancing existing equity release arrangements with 27% of loans used for this reason.
Simon Gray, managing director at HUB Financial Solutions, said: “A growing number of people, who are approaching or entering retirement with equity in their property, find releasing this money is an attractive way to help them to finance their goals in later life.
“This data reveals the varied and changing priorities of equity release customers and usefully illustrate general trends.
“But no two customers’ circumstances are the same so it’s essential that customers receive advice that’s personalised to their situation.
“Unlocking housing wealth isn’t the right solution for all customers and that’s why customers must receive regulated advice, to ensure all options are explored in a disciplined way.
“It can be an attractive and appropriate option for many people in later life – whether that’s to clear debt or make gifts to family – and with lifetime mortgage interest rates currently low we are helping a significant number of customers re-financing their existing borrowing.
“There is a growing range of products, which can be flexibly tailored to each customer’s circumstances, so with expert advice customers can be confident of finding a way to meet their financial needs in a way that best suits them.”
