Article date: 4 August 2008
Norwich Union, the market leading provider of equity release products, is making significant improvements to its lifetime mortgage equity release proposition.
A new higher loan to value lifetime mortgage is being launched and two existing lifetime mortgages are being renamed and revamped.
These changes include:
- A high rate LTV product - Lifestyle Lump Sum Max - will be launched
- The Lifestyle Flexible Option will replace the Cash Reserve Option
- The Lifestyle Lump Sum plan will replace the fixed rate lifetime mortgage
The product changes will allow Norwich Union to offer equity release customers:
- Increased LTVs at every age group
- Simplified fees. Legal and application fees have been combined for greater simplicity
- A reduced application age of 55 for all lifetime mortgage products
- No waiting period for further borrowing
- For our Lifestyle Flexible Option, we can now offer greater flexibility with an open ended reserve facility, and minimum initial loan size of £10,000
- The Lifestyle Lump Sum Max, will give customers the opportunity to release even more equity from their product at every age.
The changes will come into effect on 4 August 2008.
Anthony Rafferty, head of marketing, post retirement at Norwich Union, said: "We are making significant improvements to our lifetime mortgages in response to demand from advisers and their customers. They told us that they want products that offered more flexibility and were easy to understand - and that's exactly what we're delivering with these changes.
"The equity release market is changing fast. Customers and advisers now want more flexibility and choice when it comes to choosing when and how they release equity from their home. These improvements, together with the changes we made to our reversion product in May represent a step-change in our product set in terms of quality and choice."
Press office contacts:
Telephone: 0207 662 0550 / 07800 693187
The Wriglesworth Consultancy:
Suman Katyal/ Karen Butcher/ Zara Hosford
Telephone: 020 7427 1400
Notes to editors:
- No waiting period for further borrowing
- Combined legal and application fee
- Minimum age has been reduced to 55 years
- A lending cap on retirement properties to 90% of the valuation
Lifestyle Flexible Option only:
- An open ended reserve facility
- A minimum initial loan of £10,000
About equity release
Norwich Union is the leading provider of equity release plans in the UK. Source SHIP Equity release is a way of unlocking some of the capital in your home and turning it into cash - without having to move. Norwich Union offers three types of equity release plan. These are known generically as:
- Lifetime mortgage: A loan secured against your home, with no regular repayments to make as the loan and interest are rolled up and usually repaid when you die or if you need to move into long-term care.
- Home reversion plan: Enables you to sell all or a percentage of your home in return for a cash lump sum.
- Lifetime mortgage including a drawdown option: A lifetime mortgage that enables customers to unlock some of the value in their home by releasing an initial amount of money and keeping a reserve fund available that can be released in future when required.
Taking a lump sum plus our costs will reduce the value you have in your home and therefore any inheritance you leave. You tax and welfare benefits may also be affected.
Norwich Union is a found member of SHIP (Safe Home Income Plans), a group that was launched in 1991 and is dedicated entirely to the protection of planholders and promotion of safe home income and equity release plans. All participating companies are pledged to observe the SHIP Code of Practice.
About Norwich Union
Norwich Union is the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers.
FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union is the UK's largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.
Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media