View more on these topics

NU survey reveals what customers spend lifetime mortgage on

Home improvements and holidays are the most popular choices when spending a lifetime mortgage, Norwich Union research has revealed.

News cars and top-up incomes alse feature highly in the list. 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 dont 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, says: These figures show that the majority of equity release money is needed for practical purposes.

“Its 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.

Recommended

Nationwide increases rates on fixed rate mortgages

Nationwide has increased the rates on its range of fixed rate mortgages. The new rates are available from Wednesday June 28 2006.The rates are as follows: * Two-year fixed rate (with 399 fee) available from: 4.98% * Two-year fixed rate (with 699 fee) available from: 4.79% * Three-year fixed rate (with 399 fee) available from: […]

More lenders sign up to em- round table event

Four further key residential lenders have confirmed that they will be attending em’s upcoming Cardiff roundtable event. Representatives from Future, First National, Kensington and Platform will now all be present at the event which will be held on the July 12 at the St Davids Hotel & Spa in Cardiff.Stuart Brumhill, head of marketing, says: […]

Online mortgage DIPS for GHL packagers

Guaranteed and Genesis Home Loans is now offering its packagers the use of its online mortgage DIP facility. Previously available to only Appointed Representatives and Directly Authorised brokers, the online DIP service will now be added to the GHL packaging website www.ghl-live.co.uk/packaging for use by the groups network of DA packagers. Having access to the […]

Brokers back packagers

Brokers and IFAs think packagers still play an im- portant role in the mort- gage industry, according to research from Platform. A poll of over 200 mortgage brokers and IFAs found that 62% would submit the same amount of business or more to packagers over the next 12 months. The research shows that packagers remain […]

Newsletter

News and expert analysis straight to your inbox

Sign up