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Equity release used for gifted deposits

Feb 17, 2023

It’s estimated that first-time buyers (FTB) using a gifted deposit can get onto the property ladder up to 11 years faster than prospective buyers consistently saving.

The research1 found that a UK household saving £180 a month would take 10.9 years to reach the average £23,549 deposit needed by first-time buyers in England.

In contrast, a gift could get FTBs onto the ladder much faster. The average sum2 raised by equity release for use as a gifted deposit in the UK is £61,596 – far above the average deposit for a FTB.

Your home may be repossessed if you do not keep up repayments on your mortgage. A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate

 

1 more2life

2Key Market Monitor