Later life borrowing in a world that's living longer
We asked the London School of Economics to look into how people are using housing wealth in later life. In particular, what types of older people (aged 60+) withdraw equity from their homes? How do they decide between the possible ways of doing so? And how do they use the funds released?
Download our report here.
You can download our report here
Releasing housing equity – what’s it for?
Our research has highlighted that the older home owners are spending their housing wealth now rather than use their accumulated equity to provide for their future long term care needs.
The report, ‘Later life borrowing in a world that’s living longer’ shows that older borrowers’ priorities are more immediate, choosing to focus instead on helping family members financially or to support their own needs. These present day concerns include refinancing an existing mortgage, home improvements or helping with grand children’s education, for example.
Housing wealth can only be spent once. Modern day families also have to consider how best to help their children and grandchildren who face their own set of financial pressures while having to plan for the looming issue of old age care and how to fund it. It appears that for the time being at least, their priority is on present day needs and not the future. The long term implications of spending this wealth now are a massive issue with which government must help and create some semblance of order in a currently chaotic policy area.
Our report makes the need for joined up housing and later life lending and care policies all the more urgent.
We'd like to thank those of you who took the time to help us with this research, as your input was invaluable.
Our previous research projects, in conjunction with LSE, include how the Bank of Mum and Dad really works, and the effect Stamp Duty on the housing market and the wider economy. Links to our reports and guides can be found below:
The Bank of Mum and Dad: How it really works
A tax too far? Monitoring the impact of SDLT
Our report, The Bank of Mum and Dad: How it really works, explores the extent to which parents and grandparents are using family assets to help their children on the property ladder and what they really think about it.
Our report, A Tax too far? Monitoring the impact of SDLT, looks at the effects of Stamp Duty Land Tax (SDLT) on the housing market and the wider economy, and its impact on household behavior.
For more information on any of our research projects, please speak to your local BDM or our Mortgage Desk or visit our dedicated consumer webpage.