Norwich Union equity release schemes are proving popular with the over 60s Norwich Union's equity release products are proving very popular with homeowners over 60. Since their launch, both the Flexible Cash Release Plan (FCRP) and the Flexible Income Release Plan (FIRP) have had significant uptake across the UK.
Norwich Union equity release schemes are proving popular with the over 60s
Norwich Union's equity release products are proving very popular with homeowners over 60. Since their launch, both the Flexible Cash Release Plan (FCRP) and the Flexible Income Release Plan (FIRP) have had significant uptake across the UK.
Daren Carter, Norwich Union's equity release marketing manager, said: "A sustained increase in property value over the past twenty years has left many over 60s sitting on a substantial nest-egg. Norwich Union equity release products ensure that people in or approaching their retirement can convert property value into either a cash lump sum, or a regular and guaranteed income for life."
The two products are similar in that they both allow customers to release a percentage of the capital in their home to use either as a cash lump sum (FCRP), or receive an income for life, and a proportion as a cash lump (FIRP).
The money unlocked from the Flexible Cash Release Plan can be spent however the customer wants. Existing Norwich Union customers with equity release plans have, for example, given money to their children or grandchildren, visited friends and family living abroad, bought new cars or made home improvements.
Alternatively, customers can choose to use the money released to buy an income (FIRP). For example, a 70-year-old woman with a property valued at Ł100,000 could unlock Ł32,000 from her home and if she used all of this money to buy an income she could receive a gross annual income of Ł2,542.56, for life*.
Key features of both equity release products are:
- Open to customers with properties worth between Ł60,000 and Ł500,000.
- No-negative equity guarantee.
- There is nothing to repay until the home is sold.
- Customers continue to own the house and are free to live in it as long as they wish.
- Customers can move house if they want to.
- Additional loans may be available in the future**
For more information on the Flexible Cash Release Plan and the Flexible Income Release Plan call Norwich Union on 0845 300 2493.
-Ends-
* The annuity is guaranteed for 5 years, is non escalating and is paid monthly in arrears. The income available is based on the annuity rates in force at the date the annuity commences. Any income payment may be subject to income tax in the hands of the recipient.
** Subject to lending criteria at the time.
Press contacts:
Liz Maw or Louise Zucchi at Norwich Union on 01603 683820 or Jane Kirby at Lawson Dodd on 0207 580 1945
Notes to editors:
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. However, there are no repayments to be made during your lifetime unless your property is sold. The plans should be seen as a lifetime commitment. Substantial early repayment fees may be payable if the loan is repaid for a reason other than death or long term care needs.
The Flexible Cash Release Plan and Flexible Income Release Plan enable customers to take out a loan secured on their property.
The interest rate may change for new loans as it is based on prevailing market conditions. However, the interest rate for a loan is fixed on the completion date. Confirmation of the current interest rate, or a personal illustration can be provided on request.
Anyone living in the property, other than the customer(s), must sign a waiver to their rights of occupation. If any new residents move into the property during the plan’s lifetime, Norwich Union must be informed and waivers must be signed.
The customer(s) may be able to take out further loans under the plan. However, the availability of further loans is not guaranteed and terms will be those applying at the time the request is made. If the customer is entitled to state benefits they may be affected. Additionally income tax may also become payable.
The income under a Flexible Income Release Plan is provided by a Norwich Union Immediate Life Annuity. The income received under a FIRP is taxable as savings income.
The annuity has no cash in value at any time.
Full terms and conditions are available on request.
The Immediate Life Annuity is provided by Norwich Union Life & Pensions Limited No. 3253947, member of the Association of British Insurers and regulated by the Personal Investment Authority. Norwich Union Equity Release Ltd. Registered in England No.3286484 which is not regulated by the Personal Investment Authority. Companies are registered in England at 8 Surrey Street, Norwich, NR1 3NG.
NORWICH UNION CASE STUDY
Mr and Mrs Hammond
Having had a hard but enjoyable working life as a chief buyer for an electrical installations company, Henry Hammond decided he and his wife deserved a retirement free from financial worry. They consulted their Independent Financial Adviser Phil Formoso of Philip Nicholas Partnership and looked at ways of helping them realise their dreams.
The Hammonds considered three product providers before discovering Norwich Union's Flexible Cash Release Plan. Taking out this plan meant that the couple would be able to free some of the capital they had tied up in their home, without the worry and burden of monthly repayments.
Mr and Mrs Hammond discussed their plans with their two children, who were both keen their parents enjoyed their retirement years. The Hammonds released 25% of the property value, as they wanted to feel confident that they still have enough money left to pass on as an inheritance for the future of their three grandchildren.
Recently the couple celebrated their 50th Wedding Anniversary, and having released the funds they were able to celebrate in style, inviting family and close friends to a party. Mr and Mrs Hammond also made some dream purchases - they are the proud owners of a new car, furniture for their home, and have invested the remaining money to be spent on future holidays and general living expenses.
Mr Hammond said, "I am delighted that we found the Norwich Union plan. It means that we can get on with enjoying our retirement rather than worrying about making ends meet. The plan is extremely flexible, and it has left us with the opportunity to leave some money to our children, while improving our quality of life."