View more on these topics

Pru launches lifetime mortgage product

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 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.”


Buy-to-let sector remains strong, says MEX

Latest research from buy-to-let lender Mortgage Express reveals the sector remains strong and that landlords are positive about its future.The Buy-to-Let Confidence Survey from the specialist lending arm of Bradford & Bingley, claims that 87% of its respondents are planning to either extend or maintain their portfolio over the next six months.The survey also shows […]

Pink launches shared exclusive tracker

Pink Home Loans has launched a shared exclusive tracker product funded by BM Solutions.This market leading product offers a rate of 4.24% (BBR 0.26%) for two years with no overhang. David Copland, marketing director at Pink, says: “The rate of 4.24% is stunning, as it offers a very competitive rate up to 90% loan to […]

Briault outlines retail challenge

Clive Briault, managing director of the FSA, outlined the challenges that face retail firms in his first speech in Northern Ireland. These centre on the quality of advice available to consumers and the fair treatment of consumers by firms.

TBMC launches 85% commercial mortgage

The Business Mortgage Company, the Cardiff based specialist commercial and buy-to-let processor, announces the launch of the 85% commercial mortgage.After negotiating with its lending panel, TBMC has, in conjunction with two of its partnership lenders, finalised the details of lending schemes offering 85% LTV on an option of full, semi or non status schemes.Andy Young, […]

Sub-Saharan Africa Near-Term Outlook

By Paul Caruana-Galizia, Neptune Economist

Sub-Saharan Africa’s economic renaissance continues. After growing at an average rate of five per cent over the past decade, the IMF projects an acceleration to 5.5 per cent growth among Sub-Saharan economies in the next two years, as developed economies emerge from the crisis. We expect this growth to be sustainable for three broad reasons.


News and expert analysis straight to your inbox

Sign up