In the latest research by SHIP, the Equity Release Trade Body, they found that contrary to popular belief there is no longer ‘one’ particular type of equity release customer. Traditionally, one would have presumed that an equity release customer would likely be an elderly person looking for a way to retire in the lifestyle they had become accustomed to. The report suggests that as a result of the ongoing recession many other ‘types’ of people are looking at equity release as a way to finance their lifestyle. The report indentifies six categories of individuals who typically fit the bill. Are you one of them?

The first category is someone who is looking to pay for care while they live at home in order to avoid a hefty bill by moving into residential care. This person is likely to have insufficient funds to finance supplementary care.

The second category is someone looking to supplement very low income. This person is unlikely to have any meaningful assets and could possibly be in debt.

The third category of individuals are people who are struggling to manage financially. They would also be particularly interested in sale and rent back offers. They would also have very few other assets.

The fourth category are those that have just entered into retirement and are looking for ways in which to fund their current lifestyle.  This type of person is likely to have a pension and can sustain a reasonable life on it, however they have higher expectations.

The fifth category may be a person nearing retirement who is planning ahead and wants to have a good lifestyle. They are likely to have a range of assets as well as their home.

The sixth and final category is those people looking to utilize equity release to take advantage of taxation benefits and forms part of a wealth management strategy. As you can imagine a person in this category is likely to be of high net worth and have a range of assets.

The only question remaining is; where do you fit in?