Homeowners using a lifetime mortgage to financially support family members are releasing over £110,000, according to data from OneFamily.

This figure is up 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.

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, 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, said: “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.”