Who’s helping the Bank of Gran and Granddad?

Grandparents are increasingly stepping in to help their grandchildren onto the housing ladder

The past 12 months have been challenging for first-time buyers. Reduced salaries due to furlough, redundancies and restrictions on low-deposit mortgage options have made it even harder for young people to secure a mortgage.

It’s no surprise then that loved ones have turned to family for help. But what about the grandparents who aren’t in a position to support their children with their savings?

Last year, 27% of Key’s equity release customers unlocked some of the value of their home to help children and grandchildren, with £325 million being used to help younger members of the family onto the housing ladder.*

By releasing some of the equity that’s tied up in your home with a lifetime mortgage, the most popular type of equity release plan, you can pass some money on to your children or grandchildren with less impact on your own lifestyle or retirement plans.

The money released is tax free. And with a lifetime mortgage there are typically no monthly repayments to make, as the loan plus roll-up interest is repaid when the plan ends.

In the current climate, family support has never been so relied on. If you’re looking to help a loved one with a financial gift, Key Equity Release can offer you personalised advice from fully qualified equity release experts. They’ll explain how equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.

They’ll ensure you consider all your options. And if equity release isn’t right for you, they’ll tell you.

Take the first step to finding out if your home could help you support your loved ones by requesting your FREE Yours guide to equity release today.

*Market Monitor, FY, 2020 **Lowest available rate correct as of March 2, 2021. All other stated rates correct as of March 2, 2021. Interest rate received and plan features are subject to eligibility. Ask for a personal illustration.