The Senior UK population is finding it harder to make ends meet, to pay debt and to maintain their homes. In this hard cash strapped economy many are looking to equity release to generate cash into hand.

In a report conducted by the University of Birmingham for Housing and Financing in Later Life: A Study of UK Equity Release Customers, it stated that many of the equity release customers used their cash to pay for home maintenance.

Three-quarters stated using the funds to boost their personal capital or to increase their quality of living in their requirement. Those responding to the study that were more financially well off reported using the cash from the equity release to make a large purchase or to make an early bequest.

Louise Overton of the University of Birmingham, who conducted the research, said the equity release does little in pulling seniors out of poverty. "This suggests a need for more consideration of how those with very low incomes and limited housing assets might benefit from equity release should they wish to use it," she said.

Age UK says that of homeowners over the age of 65, two-thirds currently do not have a mortgage and they are struggling to maintain their homes. Many seniors must use a mortgage equity release or remortgage equity release as the primary source of funds to make home repairs that are necessary to continue living in their homes.

The top three uses reported in the study for released equity were house maintenance and repairs (46 per cent), holidays (36 per cent), and debt clearance (35 per cent).

While two-thirds reported having no mortgage, the final third of those who do have a current mortgage could achieve the same benefits by considering a remortgage equity release.