Norwich Union research has revealed what the company’s customers spend their lifetime mortgage money on.
Norwich Union research has revealed what the company’s customers spend their lifetime mortgage money on.
Many customers who take out a Norwich Union Lifetime Mortgage spend the money released from their home on home improvements, holidays, new cars and to top up their income. The breakdown of what Norwich Union customers use their lifetime mortgage money for is as follows.
- Home improvements 74%
- Go on holiday 47%
- Top up income 37%
- Buy a car 35%
- Healthcare 8%
- Inheritance tax planning 5%
(Figures add up to more than 100% because customers often use their lifetime mortgage money for more than one purpose.)
The research shows that customers don’t rush into taking out a lifetime mortgage. Nearly two-thirds (64%) of lifetime mortgage customers wait between three and 12 months between first thinking of taking out a lifetime mortgage and approaching either Norwich Union or a financial adviser.
Some 99% of customers said they were satisfied with the way Norwich Union handled their application and about 95% said they would recommend a Norwich Union scheme to a friend.
Mark Kelly, director of Norwich Union Personal Finance, said: "Lifetime mortgages are popular with people who want to maintain their lifestyle after they retire. Many older people – particularly those on low incomes – use them to pay for home improvements such as new windows, conservatories and even to pay for things such as new central heating systems."
He added: "Research we commissioned shows that many retired people would like to improve their home but do not have the money to do so. Holidays and new cars are also important for people who want to maintain the lifestyle in retirement that they had while they were working."
-ends-
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James Evans 01904 452791 Out of hours 07800 699525
Notes to Editors
*Research conducted by Norwich Union Personal Finance Ltd. 195 Norwich Union customers were surveyed in February 2005.
Minimum property values apply. Norwich Union is the market leading lifetime mortgage provider with a market share of 41.5% (Source Safe Home Income Plans Q4 2004).
Full written terms and conditions are available on request. 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. Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media. Norwich Union Equity Release Limited No 3286484. Registered at 2 Rougier Street, York, YO90 1UU. Authorised and regulated by the Financial Services Authority