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.”
