Legal & General Home Finance customers continue to use property wealth to provide financial support for families and to invest in their homes. The desire to help loved ones will likely remain consistent throughout 2023.
Lifetime mortgage customers are continuing to use the value of their property to help financially support their families and to make changes to their homes, according to customer data from Legal & General Home Finance (LGHF).
Data shows that Legal & General customers use the value hidden in their homes to help family members meet financial goals, in 11% of drawdowns. With the average house price for a first-time buyer standing at £245,522 toward the end of last year, according to Land Registry data2, financial gifts remain crucial to helping new buyers meet the cost of a deposit. Using equity to support family members in this way is likely to remain consistent during 2023.
Home improvements remain the most common reason for drawing down funds from the home, in 53% of applications. With the market still challenging, many homeowners may be considering improving rather than moving. However, the type of home improvements people are making could be changing. Legal & General’s Equity Economy research, carried out last year, found that 13%of those surveyed had accessed property wealth to finance energy efficiency improvements, with insulation ranking as the most popular improvement in this group.