46% of equity release applications to Canada Life in 2021 were from customers looking to clear the remainder of their mortgage, the fourth year running it has held the top spot.

This was followed by a third of customers seeking to make home improvements in order to add extra value or enjoyment to the property.

Almost a fifth of customers were looking to equity release to help them support the costs of day-to-day living, the first time it has entered the top three.

Customers also continued to use equity release to make substantial one-off purchases such as buying a new property (15%), booking a holiday (12%) or buying a car (11%).

Alice Watson, head of marketing, insurance at Canada Life, said: “Understanding the reasons behind releasing equity can provide an interesting snapshot into the lifestyles and needs of our customers. We can see that the desire to wave goodbye to mortgage payments continues to be a strong motivator to freeing up equity from a property.

“We’ve also seen a steady rise in people turning to equity release in order to cover their daily living expenses, the demand likely being driven by the current cost of living crisis.

“The variety of reasons given for releasing equity highlight the flexibility and accessibility of modern products allowing families the ability to enjoy their retirements comfortably in a way that suits them. However, equity release is a lifelong financial decision, so it is essential that people seek financial advice and talk through their decision with loved ones before agreeing to a product.”