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's equity release mortgage products.
The Daily Mail fired a warning shot across the industry's 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's membership be reviewed while it maintains its current policy.
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