Article date: 17 May 2004
Norwich Union believes that IFAs will support the Treasury'sdecision to regulate home reversion equity release plans. It hasconducted research which shows that the vast majority of IFAs(89%)* believe home reversion plans should be regulated.
IFAs are also concerned about the lack of awareness amongconsumers with 83%* stating that they did not believe consumers areaware of the different types of equity release schemes.
This is supported by Norwich Union's research which revealedthat 78% of consumers over 50** could not correctly identify adescription of home reversion plans. Additionally, 61% of consumersbelieved it would not be easy to obtain full information on homereversion plans, or were unsure where to go for information
Mark Kelly, director of Personal Finance at Norwich Union, said:"Regulation is a good basis from which the market can safely grow,and should be pushed through as a matter of urgency. The nextpriority must be to educate consumers about the types of schemeavailable and help them understand where they can obtain advice andinformation. We recommend anyone advising on equity release toensure they offer clients full financial advice, that they urgeclients to consult with their families and that they choose ascheme from a SHIP provider."
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 Goffee 01904 452617 Out of hours 07810 057262
Notes to Editors
* Conducted amongst 80 independent financial advisers January2004
** Conducted amongst 283 respondents who were all home ownersover 50 (December 2003)
- Minimum property values apply. Norwich Union’s EquityRelease is a lifetime mortgage secured against your home. CHECKTHAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE ORSELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU AREIN DOUBT, SEEK INDEPENDENT ADVICE. A personal illustration andfull terms and conditions are available on request. NorwichUnion Equity Release Limited No 3286484. Registered at 2 RougierStreet, York, YO90 1UU. Not available in Northern Ireland, theChannel Islands and the Isle of Man.
- 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 imagesare available from Aviva's internet press centre at www.aviva.com/media