Two thirds of equity release borrowers involve family or friends in their decision, according to research by Key.
The lender found that only 4% of those who consulted family reported that relatives and friends were skeptical about their plans.
Specialist equity release advisers typically encourage borrowers to speak to their loved ones before taking out a lifetime mortgage in order to help with estate planning and avoid arguments or unpleasant surprises further down the line.
Among the one in three applicants who chose not to involve others in the decision, 29% said it was “because it is none of their business”.
More than one in five borrowers use part or all of the money released to support family.
Providing an early inheritance (62%) was the most popular reason for giving, followed by help with a house deposit (51%) and helping with debt repayment (9%).
Over a quarter (26%) provided financial support for other reasons that range from helping with school fees to family holidays and moving in gifts.
Key chief executive Will Hale says: “Discussions around inheritance or the financial position of older relatives can often be something that families avoid but as part of the equity release process, we actively encourage people to consult their nearest and dearest on the options being considered.
“It is great news that almost two-thirds are happy to have this discussion but we would certainly be keen to see this proportion increase – especially as one in five use the proceeds of equity release to support relatives.
“Far from being the preserve of the wealthy, intergenerational wealth transfer or gifting is becoming far more commonplace as people increasingly realise the impact of a timely boost to the finances of children and grandchildren.
“Naturally, people need to ensure that providing a gift doesn’t damage their own financial security, which is something that a specialist adviser will discuss with them.
“However, the use of housing equity can be a pragmatic way for many people to achieve this objective.”
