Just Retirement is entering the market with a new generation of equity release products.
It is launching a modern, flexible plan designed to meet client needs and a comprehensive, high quality support and education package for IFAs.
JR has built a training package in association with the Chartered Insurance Institute to help advisers to obtain CF7 exams, dedicated Personal Finance Society roadshows and other measures to be announced shortly.
The equity release plan has been designed to offer clients maximum flexibility, drawing down money only as and when they need it, with a fixed interest rate for each drawdown and no hidden charges.
Extensive research into the area has repeatedly revealed that above all clients want flexibility and control from equity release products.
Andrew Megson, sales director for Just Retirement, says: Just Retirement believes that clients should not have to pay more for draw down.
“We want to encourage people to only take what they want when they need it, and as such offer a low interest rate for straight cash release and draw down.
The equity release plan offers a number of USPs, including, the lowest interest rate currently on the market at 5.99%; LTVs from 25% to 42%; the ability to draw down modest initial cash advances as low as 10,000 and further cash advances as low as 2,000.
Additionally, as part of a special offer, the valuation fee will be refunded on completion for all applications received by December 31 2005.
Megson, adds: Equity Release provides solutions for a great many people in retirement, helping to supplement inadequate pension provision and enabling clients to maintain the lifestyle they enjoy.
We know this is a sensitive area and we are committed to helping IFAs provide the right solution for their clients in the right way. The focus on service, support and value that Just Retirement has brought to the annuity market is central to our equity release offering.
Mike Fuller, chief executive of JR adds: The FSA are working to ensure that firms treat customers fairly, highlighting weaknesses in providers who ignore whether IFAs have adequate knowledge of the product and the market.
Many providers also fail to offer adequate support to handle technical or servicing enquiries on their products. Just Retirement believes that this approach is wrong and will do everything it can to support IFAs.
Additionally the equity release market has been characterised by products which release large cash sums and charge relatively high rates of interest.”
Peter Fisher, director of NHFA, says: The Just Retirement plan breaks new ground within the IFA market by offering the lowest rate currently available within the equity release market for Lifetime Mortgages at 5.99% AER, and because it offers the choice between a traditional roll up mortgage or a fixed repayment option at the outset.