Prudential UK today confirmed that its lifetime mortgage product will be open for business from October 17 2005.
It has also launched an online calculator to help advisers calculate the potential savings that can be made using the Prus flexible product.
The calculator compares different loan amounts and interest rates, enabling advisers to see the possible impact of drawing down funds rather than releasing one lump sum at outset.
Advisers can input the exact amount they want and compare loans at different interest rates.
The calculator allows advisers to consider both of Prus product options Flexible and Flexible Plus.
This confirmation follows the launch of the illustrations system for Prus Property Value Release Plan a month ago. The product has pushed the lifetime mortgage market to the next level of innovation, offering a high degree of flexibility, the option of an increasing LTV, and the potential savings associated with a flexible loan.
David Still, retirement director for Prudential UK, says: “The Prus Property Value Release Plan has already been well received by advisers. Implementing the processing capability on the October 17 marks the start of a series of service innovations for advisers.”
The calculator allows advisers to do their own research on Prus Property Value Release Plan, saving them valuable time. It is designed as an additional tool that can help advisers decide which lifetime mortgage represents the best deal for their clients.
They can input specific withdrawal requirements from a more traditional lump sum, to flexible drawdowns of varying amounts to work out how Prus flexible loan facility can potentially save their customers money.
To use the calculator advisers will need a UNIPASS digital certificate, available at www.pruadviser.co.uk. Its easy to register and by doing so, advisers will be able to access all the online product support around the new lifetime mortgage and can begin using the illustrations system right away.
The Pru Property Value Release Plan offers unprecedented flexibility at a competitive headline rate (6.4% 6.64% AER and 6.9% APR for comparison). There are two product options Flexible and Flexible Plus. Flexible Plus boasts the feature of access to an increasing LTV (up to 35%) over the life of the loan.
Commission to advisers will be 400 or 1% of the initial loan advanced (whichever is the greater). As a special offer to mark the launch, customers who submit application forms before March 31 2006 will not pay the valuation fee a saving of between 206-529 depending on the value of the property.
In addition, the Pru is paying advisers an additional 100 per case commission for all business received before March 31 2006.
The mortgage applications will be handled by Global Home Loans, the third party mortgage administrator. The Pru has a dedicated team at GHL and will be utilising its latest case tracking technology, which includes sending automatic updates to advisers to ensure they can follow the progress of clients applications.
Jan Holt, head of sales for lifetime mortgqges at the Pru, says: “The online calculator offers something really useful to advisers. It is part of our commitment to support them.
Other initiatives we have taken recently include the establishment of a specialist lifetime mortgage team, and ongoing investment into the pruadviser website.”