Prudential opens its Prudential Property Value Release Plan today, as research reveals that customer confidence in lifetime mortgages is high
Pru’s research shows that 44% of home owners over 55 would consider a lifetime mortgage, compared with 18% in 2004 that would consider an equity release product, and 9% in 2003.
When the question was opened to all age groups, 48% were interested in lifetime mortgages.
The fact that lifetime mortgages are now regulated makes 31% of people more likely to consider one. 47% of the population plan to use their home equity to help fund their retirement and 16% of people think it will be the biggest part of their pension provision. 12% think that home equity will make up half or more of their retirement income.
The Pru says advisers share consumer confidence in lifetime mortgages. Sine launching the product detail and the illustrations system, it reports over 2500 telephone calls from customers and advisers have been received, and illustrations to the tune of tens of millions of pounds have been issued.
Ali Crossley, director of lifetime mortgages at the Pru, says: “I am very pleased to be opening the product for new business. This has been a very exciting year for us in terms of product development and marketing and I’m delighted that the hard work is paying off.
“Given the amount of interest already received from advisers and customers, we are convinced that our new Property Value Release Plan will be a resounding success.”
The Prudential Property Value Release Plan offers a high degree of flexibility, the option of an increasing LTV, and the potential savings associated with a flexible loan. At 6.45% (6.64% AER and 6.9% APR) it has no time restrictions on drawdowns, and a competitive rate.
As a special offer to mark the launch, customers who submit application forms before March 31 2006 will not pay the valuation – a saving of approximately £206-£529 depending on the value of the property. This offer may be extended or removed at any time. Commission to advisers will be £400 or 1% of the initial loan advanced (whichever is the greater).