Article date: 15 November 2004
Norwich Union is changing commission rates for IFAs who writelifetime mortgage business.
Standard commission terms – which most IFAs receive - willincrease to 1% of the loan amount released by the customer.Currently they receive 0.5% of loan value plus £150. The new termswill come into force on 1 January 2005.
Norwich Union's commission structure change reflects the highercosts IFAs now face in a newly regulated lifetime mortgage market,and rewards those who choose to specialise and invest in the growthof the market.
Mark Kelly, director of Norwich Union Personal Finance, said:"This is good news for IFAs. 98% of IFAs who write business with uswill benefit from these changes. Not only have we increased ourstandard terms to 1% of the loan amount released, we have alsoadapted our commission structure so that we can remunerate thosewho specialise in the market.
"Under the new standard commission rate, an IFA will receive£500 for advising a customer who takes out a £50,000 lifetimemortgage – an increase of £100 on current terms."
Press office contacts:
David Gwyer 01904 452828 Out of hours 07800 699508
Rob Pell 01904 452659 Out of hours 07800 699563
Louise Soulsby 01904 452617 Out of hours 07800 699526
James Evans 01904 452791 Out of hours 07800 699525
Notes to editors:
- 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 indepentadvice
- Norwich Union is the market leading equity release providerwith a market share of 41% (source Safe Home Income Plans Q22004)
- Full written terms and conditions are available on request.Norwich Union is the UK's largest insurer. It is the UK's largestprovider of life, pensions and investment products and one of theleading IFA providers. IFAs provide around 75% of the company'slong-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 newsreleases and a selection of images are available from Aviva'sinternet press centre at www.aviva.com/media
- Norwich Union Equity Release Limited No 3286484. Registered at2 Rougier Street, York, YO90 1UU. Authorised and regulated by theFinancial Services Authority.