Article date: 14 July 2003
On 30 June, Norwich Union reduced the fixed rate on its FlexibleCash Release Plan from 7.55% to 7.29%.
In addition, from today (14 July), Norwich Union is taking afurther step to support the key IFA channel by launching a "specialoffer" that reduces the rate for IFAs to 7.15%.
This is the lowest equity release fixed rate available to allIFAs.
All other product terms and eligibility criteria areunchanged.
This special offer will be extended to Norwich Union’sbuilding society partners from next month (a separate announcementwill be made in due course on this).
Commenting, Rob Jones, head of sales channel development atNorwich Union Equity Release said: "From research we’vecarried out, we know that 87% of IFAs are keen to generate furtherequity release business, and we are confident that this move willkeep Norwich Union as the leading provider in IFAs’minds.
"Most product and service providers now reflect the cost ofdistribution in their product pricing. However, within the equityrelease market, it remains the case that most providers distributetheir plans through one channel only, and their pricing simplyreflects the costs of operating in that channel. Norwich Union isone of the few equity release providers to have multi-channeldistribution.
"We intend to test IFA demand through this special offer, and ifit proves successful, we will look to introduce channel pricing ona more permanent basis."
Press office contacts:
Ian Beggs 08703 66 68 71/07790 487533
Notes to editors
- The availability of this special offer will be reviewed on anongoing basis, in line with market conditions, and will only beavailable for a limited time. Norwich Union reserves the right towithdraw the special offer at any time without notice.
- Norwich Union is the leading provider of equity release plansin the UK with a market share of more than 40% at the end of2002.
- Sales of equity release schemes doubled between 2000 and 2002and the Council of Mortgage Lenders projects the UK market couldrise to £50bn by 2008. Norwich Union estimates that 90,000customers are actively considering releasing £3.2bn of equity intheir homes.
- Recent Norwich Union research amongst 319 IFAs showed that 82%of those IFAs selling equity release at the end of 2002 believedthey would sell more in 2003. Meanwhile, 72% of those not sellingthe product at the end of last year expected to be doing so withinfive years.
- Minimum property values apply. Equity release is a lifetimeloan secured against your home. CHECK THAT THIS MORTGAGE MEETSYOUR NEEDS IF YOU WANT TO MOVE OR YOU WANT YOUR FAMILY TO INHERITIT. IF YOU ARE IN DOUBT, SEEK INDEPENDENT ADVICE. A personalillustration and full terms and conditions are available onrequest. Norwich Union equity release limited No 3286484.Registered at 2 Rougier Street, York YO90 1UU. Not available inNorthern Ireland, the Channel Islands and the Isle of Man.
- Norwich Union is the UK’s largest insurer. It is aleading provider of life, pensions and investment products and oneof the leading IFA providers. IFAs provide around 70% of thecompany’s long- term savings business.
- 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 are available on the Avivaplc website at www.aviva.com.