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Scottish people are more comfortable with releasing equity to support a loved one financially, second only to Londoners

18th March 2024

Those north of the border are happy to release funds through their home to support a family member, Hodge study shows

Scottish people are more comfortable releasing equity from their home to help their loved ones financially than anyone else in the UK, and outside of London, according to new research from Hodge.

In its latest study, Hodge questioned 1,240 people aged between 16 and 80+, and found that the vast majority (84%) of people aged under 50 UK-wide claim to need financial support from family to help them with the cost of living.

In response to this, just over a quarter of people aged 50+ said they would consider releasing funds against the value of their property and around 40% feel comfortable with the idea overall, the study shows.

In Scotland, however, more than a third of people aged 50+ said they would be happy to raise equity through their home in order to help out a family member - a greater number than anywhere else UK-wide, apart from London.

This was in contrast to people living in the North of England, who felt the least comfortable in releasing funds from their property to support a loved one financially, where three quarters of respondents also said the cost of living crisis had impacted younger family members needing financial support compared to a national average of 61%.

Andrea Roberts, national account manager at Hodge, said of the findings: “It stands to reason that people living in different areas of the UK are going to feel financially challenged in different ways, in accordance with the pressures of the economic climate presented by the individual region in which they happen to live.

“What’s interesting about these findings is it’s not the areas of the UK we might conventionally consider as being the wealthiest where people are most willing to draw on the value of their own assets  to benefit those dear to them in a financial sense. London property prices mean those living in the capital have more equity in their homes to share, which may not necessarily be the case across Scotland.

“This could suggest people across the UK are becoming far more savvy in the way they distribute their wealth generationally, and increasingly flexible in their attitudes towards drawing on the foundations of a family financially in order to provide a better future.”

“This is positive news in the current climate, where it’s becoming abundantly clear from our ongoing research that people living across the UK are going to be asking family members for help financially for some time to come.”

As part of its ongoing commitment to responding and flexing to fit its customers’ needs within the current climate, Hodge previously reduced rates on its 50+ range of mortgage products three times in as many months towards the end of 2023, and again at the beginning of 2024.

These reductions came hot off the heels of criteria enhancements for its later life products - including reducing the stress test for pound for pound remortgages, increasing income multiples on purchase and remortgage, and a reduction in living costs in light of the changes to the energy price cap - too.

Andrea said: “Our focus at Hodge has always been to respond to market pressures with the aim of supporting the brokers we work with and their own customers in the moments that matter – and we’re working harder than ever in light of this research to make sure that continues.

“With this in mind, the ability to release equity from homes to help our loved ones out in times of need is proving increasingly useful within the current economic climate, and I can only commend the generosity of the Scottish people in leading the way on this!”


Notes to editors:

For more information please contact: Kath Chadwick or Jess Childs at Front Door Communications on [email protected]/[email protected] and 029 20 020360.

About Hodge:

Hodge is an independently owned group based in Cardiff, offering a range of personal mortgage products, savings products to private and commercial clients, as well as lending to commercial clients nationwide.

Over 85,000 customers across the UK trust Hodge to support them because of its years of expertise and knowledge in the markets it serves. Hodge design products with customers in mind, keeping things simple and straightforward. The Hodge Foundation, a charity supporting the welfare, medical, academic and educational areas own 79% of Hodge.

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