Article date: 27 August 2004
Buying a new car is one of the main reasons older people takeout a lifetime mortgage, according to Norwich Union Equity ReleaseLtd.
More than £1.1 billion* was released from older people’shomes in 2003. With new car registrations due on 1 September,figures from Norwich Union Equity Release Ltd show that more than aquarter (28%) of people releasing equity from their home plan tospend at least some of the money on a new car. (See notes toeditors).
With 20% of the UK population aged over 60, more older peopleare driving. There are two million drivers in the UK aged over 70and over the last 30 years, the largest increase in active drivinglicence holders has been among older women. There was a 600%increase in female drivers over 65, and a 200% increase in maledrivers over 65 compared to a 29% increase in both male and femaledrivers aged 17-59.**
Mark Kelly, director of Norwich Union Personal Finance Ltd,said: "Having a car is the key to independence for many people.However, buying a new car can be a huge financial burden for olderor retired people and we have found that many of our customers usea lifetime mortgage to buy a car that they will be able to enjoyfor years."
Mr Kelly added: "Taking out a lifetime mortgage is a bigdecision to undertake and homeowners must ensure that they feelconfident that they will be making the best of their money, howeverthey choose to spend it."
Press office contacts:
David Gwyer 01904 452828 Out of hours 07800 699508
James Evans 01904 452791 Out of hours 07790 487105
Rob Pell 01904 452659 Out of hours 07968 934091
Louise Soulsby 01904 452617 Out of hours 07810 057262
Notes to editors
* SHIP figures from 2003.
Figures from Norwich Union customer tracking July 2004 show that28% of customers plan to use equity release to buy a new car.
** Statistics from Noble 2000 and UK Department for Transport2004.
Minimum property values apply.
Norwich Union’s equity release plans are lifetimemortgages secured on your home. CHECK THAT THIS MORTGAGE WILL MEETYOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOURFAMILY TO INHERIT IT. IF YOU ARE IN DOUBT, SEEK INDEPENDENTADVICE.
Full written terms and conditions are available on request. Thisis a lifetime mortgage. To understand the features and risks, askfor a personalised illustration.
- Norwich Union is the UK's largest insurer. It is the UK'slargest provider of life, pensions and investment products and oneof the leading IFA providers. IFAs provide around 75% of thecompany's long-term savings business in the UK.
- Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco Personal Financeand The Royal Bank of Scotland Group.
- Norwich Union's news releases and a selection of images areavailable from Aviva's internet press centre at www.aviva.com/media