NU to raise lifetime mortgage commission

At present, financial intermediaries conducting lifetime mortgage – otherwise known as equity release- business receive 0.5% of the loan value plus £150. However, under the new deal set to begin on January 1st, 2005 will give advisers 1% of the loan amount release to the customer, and changes have been made to the commission structure so market specialists can be remunerated. An IFA should now receive £500 – or £100 more - for advising clients who take out a £50,000 lifetime mortgage, says Mark Kelly, director of Norwich Union Personal Finance. IFAonline