On 30 June, Norwich Union reduced the fixed rate on its Flexible Cash Release Plan from 7.55% to 7.29%.
On 30 June, Norwich Union reduced the fixed rate on its Flexible Cash Release Plan from 7.55% to 7.29%.
In addition, from today (14 July), Norwich Union is taking a further step to support the key IFA channel by launching a "special offer" that reduces the rate for IFAs to 7.15%.
This is the lowest equity release fixed rate available to all IFAs.
All other product terms and eligibility criteria are unchanged.
This special offer will be extended to Norwich Union’s building society partners from next month (a separate announcement will be made in due course on this).
Commenting, Rob Jones, head of sales channel development at Norwich Union Equity Release said: "From research we’ve carried out, we know that 87% of IFAs are keen to generate further equity release business, and we are confident that this move will keep Norwich Union as the leading provider in IFAs’ minds.
"Most product and service providers now reflect the cost of distribution in their product pricing. However, within the equity release market, it remains the case that most providers distribute their plans through one channel only, and their pricing simply reflects the costs of operating in that channel. Norwich Union is one of the few equity release providers to have multi-channel distribution.
"We intend to test IFA demand through this special offer, and if it proves successful, we will look to introduce channel pricing on a more permanent basis."
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Press office contacts:
Ian Beggs 08703 66 68 71/07790 487533
Notes to editors
- The availability of this special offer will be reviewed on an ongoing basis, in line with market conditions, and will only be available for a limited time. Norwich Union reserves the right to withdraw the special offer at any time without notice.
- Norwich Union is the leading provider of equity release plans in the UK with a market share of more than 40% at the end of 2002.
- Sales of equity release schemes doubled between 2000 and 2002 and the Council of Mortgage Lenders projects the UK market could rise to Ł50bn by 2008. Norwich Union estimates that 90,000 customers are actively considering releasing Ł3.2bn of equity in their homes.
- Recent Norwich Union research amongst 319 IFAs showed that 82% of those IFAs selling equity release at the end of 2002 believed they would sell more in 2003. Meanwhile, 72% of those not selling the product at the end of last year expected to be doing so within five years.
- 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.