There has been an increase in the number of people taking out equity release to offer support to younger family members.

This is according to director-general at Safe Home Income Plans Andrea Rozario, who said retirees often like to help their relatives purchase their first home.

She stated that because of the current economic climate, it is difficult to obtain a mortgage without a large deposit.

As a result, "it would appear that those [that] have got equity in their property and the older generations are increasingly happy to tap into that equity to help younger members of their family", Ms Rozario continued.

Some pensioners also use the cash tied up in their homes to help pay for tuition fees, although this is not as popular as aiding other generations in their quest for homeownership, the expert concluded.

These are not the only reasons people choose equity release, as chief executive at unbiased.co.uk Karen Barrett recently noted it can also be used to cover long-term care bills.

© 2010 Adfero Ltd. All rights reserved. Any views and opinions expressed in news articles are not those of Just Retirement Limited. News supplied by Adfero DirectNews.