Norwich Union was very pleased this week to hear the Government acknowledge in the Pensions Green Paper that:- (i) As property ownership increases, equity in housing is likely to play a growing role in providing income for pensioners, (ii) It is to look at options to create a level playing field for the regulation of equity release and home reversion plans to protect consumers and make the market work better.
Norwich Union was very pleased this week to hear the Government acknowledge in the Pensions Green Paper that:-
- As property ownership increases, equity in housing is likely to play a growing role in providing income for pensioners,
- It is to look at options to create a level playing field for the regulation of equity release and home reversion plans to protect consumers and make the market work better.
It is very good news that the Government shares Norwich Union’s view that we need to ensure that the WHOLE equity release market is effectively regulated, including reversion schemes, and that it is vital that consumers understand the implications and risks of the deal.
Commenting, Paul Stokes, Head of Marketing for Norwich Union Equity Release, said:
“Norwich Union conducted research this year to establish consumer understanding of the various types of equity release schemes. Whilst awareness of equity release has significantly increased, consumer understanding of the different products is very low and many are confused by the differences between mortgage and reversion schemes. It is because of this that we have been arguing that all forms of equity release should be brought within the scope of regulation.
Greater consumer protection in the equity release market now on the horizon – Norwich Union
“The Treasury has clearly listened to the arguments that we have made regarding the consumer benefits that would result from wider regulation, and has now publicly stated that it is their intention to ensure that there is a level playing field for the whole of the market, including home reversion schemes. Elderly customers are clearly more vulnerable, so it is good news that they will be better served and better protected in the future, regardless of which company they do business with.”
Ends
Notes for Editors
With home reversion schemes, customers sell all or part of their home for a lump sum while continuing to live in it. Norwich Union does not offer such schemes.
With Norwich Union’s equity release products, customers still own their own home, they are guaranteed occupancy of their home in their lifetime, may move house if they need to, and will never owe more than their property is worth because of a ‘no negative equity guarantee’.
Norwich Union is the UK’s largest insurer. It is the UK’s largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company’s long-term savings business.
Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
ˇ Norwich Union’s news releases are available at this website
ˇ A selection of images are available from the Norwich Union Newscast site at www.Newscast.co.uk
Press office contacts:
| Out of hours | ||||
| James Evans, Norwich Union Life | 08703 66 68 78 | 07790 487105 | ||
| Ian Beggs, Norwich Union Life | 08703 66 68 71 | 07790 487533 | ||
| Louise Goffee, Norwich Union Life | 08703 66 68 70 | 07810 057362 |