Norwich Union has launched its Equity Release Promise Service and added fixed interest rates and flat rate application fees to its equity release range.
The Equity Release Service Promise processes customers’ applications within five working days of receipt. Norwich Union will appoint someone to value the customer’s property and prepare offer documents within the same period.
The provider will also assign a case owner once it has issued the offer, provide customer support after it has completed the equity release plan and keep customers informed of the application’s progress.
A spokeswoman for Norwich Union says: “It is something a number of our competitors do and it is something the customers want. They want to know that when they put the application in they get that rate. If not, they might go to another provider.”
Norwich Union has fixed the interest rate from the date of application for its fixed rate lifetime mortgage and cash reserve option plans. The provider will guarantee the interest rate from the day of application when it receives a valid application for 14 weeks while it completes the loan.
Norwich Union has also fixed the floor and ceiling rates from the day of application for its index-linked lifetime mortgages.
Dominic Fraser-Smith, group product manager at Norwich Union Post Retirement Products, says: “By fixing our rates at application and offering a flat rate application fee, we can help to make the equity release advice process simpler and easier for all concerned."
Last month Norwich Union cut the prices on its mortgage life insurance policies to help customers struggling to keep up protection repayments in the face of interest rate rises.
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