Buying a new car is one of the main reasons older people take out a lifetime mortgage, according to Norwich Union Equity Release Ltd.
Buying a new car is one of the main reasons older people take out a lifetime mortgage, according to Norwich Union Equity Release Ltd.
More than Ł1.1 billion* was released from older people’s homes in 2003. With new car registrations due on 1 September, figures from Norwich Union Equity Release Ltd show that more than a quarter (28%) of people releasing equity from their home plan to spend at least some of the money on a new car. (See notes to editors).
With 20% of the UK population aged over 60, more older people are driving. There are two million drivers in the UK aged over 70 and over the last 30 years, the largest increase in active driving licence holders has been among older women. There was a 600% increase in female drivers over 65, and a 200% increase in male drivers over 65 compared to a 29% increase in both male and female drivers aged 17-59.**
Mark Kelly, director of Norwich Union Personal Finance Ltd, said: "Having a car is the key to independence for many people. However, buying a new car can be a huge financial burden for older or retired people and we have found that many of our customers use a lifetime mortgage to buy a car that they will be able to enjoy for years."
Mr Kelly added: "Taking out a lifetime mortgage is a big decision to undertake and homeowners must ensure that they feel confident that they will be making the best of their money, however they choose to spend it."
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Notes to editors
* SHIP figures from 2003.
Figures from Norwich Union customer tracking July 2004 show that 28% of customers plan to use equity release to buy a new car.
** Statistics from Noble 2000 and UK Department for Transport 2004.
Minimum property values apply.
Norwich Union’s equity release plans are lifetime mortgages secured on your home. CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN DOUBT, SEEK INDEPENDENT ADVICE.
Full written terms and conditions are available on request. This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
- Norwich Union is the UK's largest insurer. It is the UK's largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company's long-term savings business in the UK.
- Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
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