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Posts Tagged ‘Home & Capital’

Home & Capital Increase Lending on Home Reversion Plans

Friday, July 2nd, 2010

Good news is back in the equity release market as Home Reversion Plan provider Home & Capital  increase on two fronts the amounts they will lend on their products.

 

Recently there has been a reduction in the number of equity release schemes available in the market which has resulted in fewer options for those in need of cash for their retirement plans.

Therefore news that Home & Capital are reversing this trend with its home reversion plans is excellent news.

 

The latest calculations now show that for a male aged 70 the home reversion rate has now increased from 43.25% to 47%. That’s a healthy increase on the amount Home & Capital will lend & represents a good increase on the equity release scheme funds clients will receive.

 

Secondly, all Home & Capital reversion plans have had an increased the ceiling on the maximum amount customers can raise.

This has now risen by over 41% from its previous maximum of £85,000 upto £120,000.

The maximum percentage of the property you can sell with Home & Capital home reversion plans is 95%.

Existing offers on the Home & Capital reversion plans will continue. This includes no arrangement fees & a special offer of a free valuation on all applications made before 31st July 2010.

The minimum age for the home reversion plans  is 65+.

 
These increases come at a time when retired people who wish to consider equity release are being hit on most sides.

Lower interest rates on their savings coupled with the impending increase in VAT will all affect the elderly population greatly over the next 12 months & beyond.

Therefore, there is some light at the end of the tunnel for the elderly who need financial assistance & a supplement to their capital or to boost income.

 

With property values showing a steady, yet unspectacular increase since the start of 2010 many people in retirement can be sitting on a large amount of equity that can be utilised.

People are increasingly beginning to embrace the idea that their property is a legitimate asset that can be used to release equity – either via downsizing or via equity release schemes.

 

To discuss your equity release requirements further please contact Equity Release Supermarket on 0800 678 5159 or email – mark@equityreleasesupermarket.co.uk

 

Prudential Set To Withdraw From Selling Equity Release

Tuesday, November 24th, 2009

Prudential has announced to the industry that it will withdraw from writing new equity release business in the New Year. The insurer will however continue to maintain the current service standards to its existing 14,000 customers.

 

As reported in earlier newsletters on this site, this follows a trent set in 2009 of other equity release providers pulling its equity release schemes – notably Coventry Building Society (Godiva), Saffron Building Society, Retirement Plus & Northern Rock.

 

However, the Prudential’s announcement is the first major casualty in the specialist equity release market  & may come as a concern. Launched in 2004, Prudential  had innovative products & backed by its strong household brand name. Their market share had been 23% in 2008 & 12% of the equity release market in 2009, with total lending amounting to around £1bn.

 

They have stated that the mortgage book always was planned to be securitised, however with current market conditions this course of action was stemmed. Barry O’Dwyer who is Managing director of retail life and pensions stated that he does not feel this securitisation market to return potentially for another five years.

 

Other factors Prudential have sited are the up-front costs of equity release provision being too high against the payback period for the capital. Prudential now feel this cash is better deployed to other product areas of the business.

 

Remaining companies in the market will surely address their positions in light of this. The major providers now left being Aviva , Just Retirement , LV= , Hodge Lifetime , Stonehaven  & the home reversion companies of Bridgewater  & Home & Capital .

Therefore, anyone considering the Prudential equity release plan must act soon! For a summary of their products and rates please click on the following link…Prudential Equity Release Plans.

 

Equity Release Supermarket still have a special offer with the Prudential which includes a free valuation & £300 cashback on completion.

 

If you have any queries or an existing customer please contact Mark Gregory on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

 
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