Brokers have heralded the dawn of an equity release remortgage market following the launch of early repayment charge-free lifetime deals by Godiva Mortgages.
Coventry’s intermediary brand’s range offers lump sum and drawdown mortgages without ERCs.
The lump sum products include a 6.45% fixed rate deal for the life of the mortgage with a £595 arrangement fee and free valuations. Drawdown products include a 6.59% fixed rate lifetime mortgage with a £595 arrangement fee and free valuations.
Colin Franklin, managing director of Godiva Mortgages, says: “I’m de-lighted to enter this growing market. Changing attitudes to retirement planning and increasing confidence in the sector shows there is a genuine need for these types of product.”
Dan Baines, sales and marketing director for Age Partnership, says: “This is an exciting time for equity release. For too long, product providers were wary about the sector due to bad publicity surrounding the unregulated plans sold in the 1990s.”
Baines says Godiva’s entry will build faith in the sector and help create sustained growth.
Dean Mirfin, business development director of Key Retirement Solutions, says: “We have no doubt that Godiva will want to quickly establish its products in the sector. Increased competition can only benefit consumers.”
Tom Moloney, equity release operations manager at advisory firm NHFA, says: “The presence of a mainstream mortgage provider with a reputation for strong customer service will benefit clients and brokers.”
He says that after spending time with Godiva’s business development team prior to its launch into equity release, he is sure it is committed to the sector’s long-term growth.
Kath Tedstone, director of Birmingham-based brokerage Helen Brown Financial Services, says: “It’s exciting to see another lender entering the market. As a small firm of specialist brokers, it’s good to hear that Godiva’s products are straightforward, with no special arrangements for larger IFAs.”