SunLife has seen an increase in the number of equity release applicants looking to give money to younger relatives as a result of the covid crisis and its impact on family finances.

Typically the majority of older home owners opt for equity release in order to meet their own financial needs.

Many borrow to boost their income or enhance their lifestyle, either through home improvement, paying for holidays, clearing debt or funding other major purchases, the lender says.

Equity release borrowers also frequently use their loans to help children and grandchildren get onto the property ladder, pay for weddings or cover university fees.

However, the financial impact of lockdown has left many older home owners borrowing money just to help their younger relatives make ends meet.

SunLife equity release director Simon Stanney says: “We have definitely seen a shift in the reasons why people are enquiring about equity release since lockdown started.

“I think with so many people suffering financially it is understandable that older homeowners  – who have built up equity in their homes and are in a “In many cases, the family home would be inherited by the children anyway, but equity release allows the gifting of that money when it is needed.”