Can one recommend NU equity deals and remain compliant?

An open letter to the MCCB and SHIP from Simon Chalk

You may be aware of the concerns that I and other industry commentators have about Norwich Union&#39s equity release mortgage products.

The Daily Mail fired a warning shot across the industry&#39s bows with its feature in September 2002 and Which? followed suit this summer.

My question is – would a registered adviser remain compliant with the Mortgage Code in recommending these plans, particularly if providing level of service (a), “advice and a recommendation on which of the mortgages they can provide is most suitable for you”? Bearing in mind the following;

• A personal illustration detailing the precise penalties can not be produced.

• If considering a remortgage in future, the penalties cannot be calculated until actual date of redemption.

• The interest rate at application and payment of valuation fee will most likely not be the rate on which the advance is released.

I have written to John King at Safe Home Income Plans to ask that NU&#39s membership be reviewed while it maintains its current policy.

Simon Chalk

Mortgage Portfolio Services