Norwich Union is launching an equity release scheme aimed at those over 60 which will unlock up to 5...
Norwich Union is launching an equity release scheme aimed at those over 60 which will unlock up to 50% of the value of a policyholder's home.
The Flexible Income Release Plan enables home owners to take out a loan on their property, combining the group's Flexible Cash Release Plan with its immediate life annuity. This will allow the over 60s homeowner to buy an income for retirement. The product is for properties worth between £60,000 and £500,000.
Daren Carter, marketing manager at Norwich Union, said: "Many people in or nearing retirement age are sitting on a nest egg and this scheme allows them to unlock some of the cash tied up in the value of their home and give themselves an income. Customers can also take up to 25% of the sum released as a cash lump sum."
A 70-year-old woman with a house valued at £100,000 could release £32,000 from the value of the home and if she used this to buy a Norwich Union annuity she would get a gross annual income of £2,542.56. There is nothing to repay until the home is sold.
IFA commission is 0.5% of the loan amount and a £150 fee plus standard annuity commmission of 2%.
Contact: 0845 300 0738.
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