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 77%
- Go on holiday 34%
- Top up income 31%
- Buy a car 26%
- Healthcare 8%
- Inheritance tax planning 4%
- Buy property abroad 1%
(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. More than two-thirds (68%) 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.
Daren Carter, director of sales and marketing at Norwich Union Personal Finance, said: “These figures show that the majority of equity release money is needed for practical purposes. It’s already helping thousands of people to make their retirement more comfortable, either by funding home improvements, filling any gaps in retirement income and making it possible for them to go on holiday.
“Providing their families with a ‘living legacy’ by, for example, helping grandchildren get a start in life, is also making retired people consider equity release.”
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Notes to editors
*Research conducted by Norwich Union Personal Finance Ltd. 117 Norwich Union customers were surveyed in April 2006.
Minimum property values apply. Norwich Union is the market leading lifetime mortgage provider with a market share of 34% (Source Safe Home Income Plans Q1 2006).
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 is the largest insurance services provider in the UK. It is a leading provider of life, pensions and investment products and one of the largest Financial Adviser (FA) providers. FAs provide over 70% 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 CIS 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