Godiva Mortgages has launched into the equity release market with a range of lifetime mortgage products, including ERC-free options.
Initially, Godiva’s products will be available through a select panel of intermediary partners, with a broader rollout expected to follow.
Godiva is offering both drawdown and lump sum products, with early redemption charge (ERC) free options available on both.
Colin Franklin, managing director of Godiva Mortgages, says consultations with intermediaries revealed that product flexibility was a major concern among advisers, and the ERC-free options help to give consumers the freedom they desire.
Lump sum products include a rate of 6.15%, fixed for the full term, with a £595 fee and free valuation, while the ERC-free product is priced at 6.45%.
Godiva’s drawdown offering charged 6.29% for a standard plan, including a £595 fee and free valuation, while the ERC-free offering charges 6.59%.
Those options with ERCs charge 5% of the balance repaid for five years, and 3% for a further five years.
Following the launch, Franklin says: “Changing attitudes to retirement planning and increasing confidence in the sector, shows there us a genuine need for this type of product.”
Dean Mirfin, business development director at Key Retirement Solutions, adds: “We have no doubt that Godiva will want to quickly establish their products within this specialist sector. Increased competition will only benefit consumers further and we look forward to the reception their launch will receive both from consumers and the industry.”
Godiva is believed to be the first equity release provider to offer products with an ERC-free option, and competitors are expected to follow suit in the coming months.
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