Six out 10 equity release customers are using their payout to help children and grandchildren get on the property ladder.
Gifting to children is now the third most popular use of equity release funds, according to new research from lifetime mortgage specialist Stonehaven.
Many are using the money as a deposit for the child's first home.
Paying down debt is still the most popular reason to take out equity release, with 80% of the 128 advisers who answered the survey saying their clients used the money to pay off an outstanding mortgage.
Home improvements was the second most popular reason, cited by 73% of respondents.
Many children who are receiving financial assistance through gifting are making interest payments on the loan in return, Stonehaven says.
It said this prevents interest from rolling up, and helps to safeguard the remaining equity in the property.
Stonehaven managing director Georgina Smith said: “At a time when the younger generation are struggling to get on a foot on the housing ladder, lifetime mortgages are providing an effective way for parents to help their children or grandchildren get started and ease life’s financial pressures.
“In recent years, equity release has become an increasingly innovative and flexible solution for older homeowners, who are looking to unlock cash from their properties to provide support for their families. We find that in many cases, choosing to take out a lifetime mortgage becomes very much a family decision.”
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