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Over 60s Benefit From the Vehicle Scrappage Scheme Thanks to EquityRelease

New research from Key Retirement Solutions (http://www.keyrs.co.uk/why-choose-key) reveals that those in the UK aged 60 and over will be amongst those benefiting from the vehicle scrappage scheme (http://www.keyrs.co.uk/is-it-right-for-me) as a result of releasing equity from their homes.

Key's8217;s analysis show's8217;s that 10% of equity release (http://www.keyrs.co.uk/equity-release-schemes) customers who released equity between January and May of this year have used equity release to buy a new car. For the month of May, when the scrappage scheme officially launched, the percentage signing up for a new equity release scheme who were buying a new car was 16%. Many releasing equity from their homes have multiple reasons for doing so, just one of which may be to purchase a new car; home improvement, holidays and repaying debt feature amongst the many uses.

Key expect the number using equity release to purchase a new car to increase further as more new enquiries are coming from customers quoting that the scrappage scheme has motivated them to buy a car now rather than later.

The average amount being released to purchase a new vehicle is 's163;8,710. Key predict that approximately 25,000 equity release plans will be taken out during 2009 which means that, based on the current trend, almost 's163;22m[1 will be released to purchase a new car.

The Society of Motor Manufacturers and Traders's8217; (SMMT) figures for the month of May reveal that sales of small cars has increased, which is exactly what the scrappage scheme is aiming for. 's8220;The mini segment was the only segment to record volume growth, up 50.3%. The supermini segment saw market share rise, from 32.2% to 34.6%, and Ford's8217;s Fiesta was again the overall market's8217;s best seller in both the month and year-to-date.'s8221;[2

According to the Retail Motor Industry Federation (RMIS) and Automotive Management, so far 8.1% of all vehicles purchased under the scheme have been made by the 60 and over age group.[3 The survey also reports that the majority (75%) of all purchases made are made without utilising consumer finance. This indicates that purchases are being made either from savings or other sources of funding.

Dean Mirfin, Key Retirement Solutions Group Director, said: 's8220;Purchasing a new car under the vehicle scrappage scheme is proving beneficial not only to younger, but also to older, households. For those who do not have the capital or income available to support a new car purchase, many see this opportunity as too good to miss, and so are looking to equity release as the solution. The further increased interest that we are seeing from those aged 60 and over since the scheme launched should no doubt result in more uptake from this age group. The over 60's8217;s will clearly be playing an important part in helping fuel the motor industry during 2009 and beyond.'s8221;

For anyone looking to release equity from their home, Key's8217;s independent guide to equity release is the best place to start. This can be obtained by calling 0800 531 6010 or visiting our website https://www.keyrs.co.uk/equity-release-guide where the guide can be downloaded.

For further information please contact:

Key Retirement Solutions

Dean Mirfin, KRS Group Director

Tel: 07879 678737

dean.mirfin(at)keyrs.co.uk

Notes to Editors

1.    According to Key Retirement Solutions's8217; data from 1st January 2009 to 31st May 2009, the average amount of equity released to purchase a car is 's163;8,709.79, and 10% purchase a car. An estimated 25,000 will release equity during 2009 according to Key Retirement Solutions. 10% of 25,000 equals 2,500. 2,500 multiplied by 's163;8,709.79 equals 's163;21,774,472.89.

2.    SMMT New Car Registrations Press Release 4 June 2009

3.    Retail Motor Industry Federation/Automotive Management Survey 4 June 2009

About Key Retirement Solutions

Key Retirement Solutions is the UK's8217;s leading independent equity release specialist. It currently arranges over 20% of all SHIP (Safe Home Income Plans) equity release plans in the UK and over 30% of all intermediary equity release business.

Key Retirement Solutions (KRS) is an independently managed company following the management buy-out from Chesnara, formerly part of Countrywide Assured Group plc, in 1st July 2004.

Key's8217;s commitment to excellent service has been recognised by the financial services industry though a series of prestigious awards:

>    British Mortgage Awards 's8211; Best Equity Release Adviser 2008

>    Mortgage Strategy - Best Mortgage Broker, Specialist Lending (2004) and Best Equity Release Mortgage Broker 2005, 2006, 2008 and 2009

>    Financial Adviser Equity Release IFA (Firm) of the Year in 2004 and 2005

>    Financial Adviser Equity Release IFA/Whole of Market Adviser of the Year 2006 and 2007

>    Mortgage Introducer - Best Equity Release Mortgage Broker in 2005, 2006 and 2007

>    Mortgage Solutions - Best Financial Adviser (Home Reversion), Best Financial Adviser (Lifetime Mortgages), Top Financial Adviser (10 employees or more in 2005, 2006, 2007 and 2008

>    What Mortgage - Best Equity Release Mortgage Broker in 2006 and 2007

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