Norwich Union, the UK’s largest provider of equity release products, is reducing the fixed rate of interest on its Cash Release Plan from 7.55% to 7.29% with immediate effect for new business.
Norwich Union, the UK’s largest provider of equity release products, is reducing the fixed rate of interest on its Cash Release Plan from 7.55% to 7.29% with immediate effect for new business.
The Cash Release Plan is a mortgage style equity release product. Norwich Union does not offer a reversion type product.
Commenting, Paul Stokes, head of marketing at Norwich Union equity release, said: “Long term gilt rates have shifted downwards, so the costs to Norwich Union of raising funds through the money markets have also come down. We’re pleased to be able to pass this benefit onto consumers by cutting our fixed rate of interest by 0.26%. This makes Norwich Union’s rate one of the most competitive around, and of course we offer equity release both direct and via the IFA channel.
“What we also need to see now is some consistency when it comes to how equity release providers publicise their rates to consumers. Norwich Union has always quoted an annual rate, which is consistent with the traditional mortgage lenders. However, in the equity release market, all too often we see consumers and the media being confused as providers promote their monthly rates, which are obviously lower. This is not in consumers’ interests and does the industry no good at all. We wish to see this practice stopped.”
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Press office contacts:
Ian Beggs - 08703 66 68 71/07790 487533
James Evans - 08703 66 68 78/07790 487105
Louise Goffee - 08703 66 68 70/07810 057362
Notes for editors
- Minimum property values apply. Equity release is a lifetime loan secured against your home. CHECK THAT THIS MORTGAGE MEETS YOUR NEEDS IF YOU WANT TO MOVE OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN DOUBT, SEEK INDEPENDENT ADVICE. A personal illustration and full terms and conditions are available on request. Norwich Union equity release limited No. 3286484. Registered at 2 Rougier Street, York YO90 1UU. Not available in Northern Ireland, the Channel Islands and the Isle of Man.
- Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 70% 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.
- Norwich Union’s news releases are available on the Aviva plc website at www.aviva.com/media