Owners warm to lifetime option

Research from Prudential reveals 44% of home owners over 55 would consider a lifetime mortgage.

This compares with just 18% of the same social group in 2004 and 9% in 2003.

When the question is opened up to all age groups, 48% are interested in lifetime mortgages.

The fact lifetime mortgages are now regulated makes 31% of people more likely to consider one. Some 47% of the population plan to use their home equity to help fund their retirement and 16% of people think this will form the biggest part of their pension provision. And 12% think home equity will make up half or more of their retirement income.

The Pru says advisers share consumer confidence in lifetime mortgages. Since launching the details of its lifetime mortgage along with its accompanying illustration system, it says over 2,500 phone calls from customers and advisers have been logged and illustrations to the tune of tens of millions of pounds been issued.

The Prudential property value release plan, at 6.45%, offers flexibility and the option of an increasing LTV as well as potential savings associated with a flexible loan.

Ali Crossley, director of lifetime mortgages at Prudential, says: “This has been an exciting year in terms of product development and marketing and I’m delighted our hard work is paying off.”

As a special offer to mark the launch, customers who submit application forms before March 31 2006 will not pay for valuation – a potential saving of about 500, depending on the value of the property.