As you may be aware Prudential have announced their imminent withdrawal from the equity release market…& time is fast running out. With this in mind we briefly look at their unique scheme features & what effect this loss will have on the equity release market as a whole.
Prudential have two equity release schemes; lump sum & increasing cash reserve plan . Within these plans the features are found: –
- An increasing cash reserve facility which provides a reserve that increases yearly by 1% of the original property value, upto age 84.
- An equity guarantee that guarantees a certain percentage of your property’s value at the start of your plan, will still pass on to your beneficiaries.
- Unlikelihood of ANY early repayment charges being applied if the plan is taken out with the current Bank of England base rate at 0.5%
Although, certain remaining equity release schemes can provide a no negative equity guarantee, none of them can offer the remaining two. Therefore, if you have a future requirement whereby you wish for a drawdown plan that offers a larger long term cash facility then the Prudential Increasing cash reserve plan could be an option.
Additionally, if you have a shorter term borrowing requirement, (possibly unsuccessful sale of property in the current climate) the Prudential equity release plan, with its unlikely NO early repayment charge scenario also could be an option. So, if these features are of interest & you are considering releasing equity from your property, what are the deadlines for last minute applications?
- Last date for quote requests is 31st December 2009
- Last date for applications which must be supported by a quote is 15th January 2009
- All applications must be completed by 31st March 2009
For last minute queries & illustrations please ring immediately on 0800 678 5159 or email [email protected]