New data from Canada Life has revealed the top motivations for customers taking out equity release.

For the fifth year in a row, the largest proportion of equity released in 2022 was customers looking to repay their existing mortgage (49%). This was followed by 32% who used equity release to make improvements to their homes.

Amid the cost-of-living crisis, equity release was used by those looking to improve their financial situation. A fifth of customers released equity to help with day-to-day living costs, while 16% consolidated their unsecured debt.

Despite this, customers continued to use equity release to support their discretionary spending. Last year, 15% released equity to pay for a holiday, while 12% bought a new property, and 10% bought a new car.

Alice Watson (pictured), head of marketing communications, Canada Life UK, said: “Customers continue to use equity release in a wide variety of ways, from home improvements to consolidation to paying off existing mortgage borrowing. As the ongoing cost-of-living crisis unfolds, many customers are taking stock of their finances, including the wealth tied up in their homes.

“The variety of motivations for releasing equity highlight the flexibility and accessibility of the options available, allowing homeowners to enjoy their retirements in a way that best suits them and their families. However, equity release is a lifelong financial decision, so it’s vital people seek the help of a financial adviser and discuss their decision with their loved ones before taking out a product.”