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The majority of equity release money is needed for practical purposes such as making retirement more comfortable or funding home improvements according to a new study out this week.
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:
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Home improvements |
77% |
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Go on holiday |
34% |
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Top up income |
31% |
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Buy a car |
6% |
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Healthcare |
8% |
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Inheritance tax planning |
4% |
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Buy property abroad |
1% |
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(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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