Norwich Union is to launch its Equity Release Cash Reserve Option on 10 July 2006.
Norwich Union is to launch its Equity Release Cash Reserve Option on 10 July 2006.
The Norwich Union Cash Reserve Option is a lifetime mortgage. It enables customers to unlock some of the value in their home by releasing an initial amount of money and keeping a reserve fund available that can be released in future when required.
Customers’ access to their cash reserve is guaranteed for 10 years and there is no limit to the number of releases a customer can make. (Terms and conditions apply. See notes to editors).
Daren Carter, director of sales and marketing at Norwich Union Personal Finance, said: “Since entering the equity release market in 1998, Norwich Union has been at the forefront of many product developments. The launch of the Cash Reserve Option is an exciting addition to our product range and means that we are now the only major provider to offer reversion, drawdown and lump-sum lifetime mortgage plans.”
The Norwich Union Cash Reserve Option will be available from financial advisers and Norwich Union Personal Finance salesforce. The minimum initial amount that can be taken is a cash amount of £10,000 and a cash reserve of £5,000. The cash reserve is available for withdrawal at any time in the future and the minimum withdrawal is £5,000.
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Press office contacts:
Cheryl Cox 01904 452791 Out of hours 07800 695275
David Gwyer 01904 452828 Out of hours 07800 699508
Louise Soulsby 01904 452617
Notes to editors:
About the Norwich Union Cash Reserve Option
Under exceptional circumstances the reserve will be cancelled automatically if:
- Norwich Union Equity Release Ltd becomes insolvent or ceases to be authorised by the FSA to provide Lifetime Mortgages
- The reserve can be suspended if the borrower breaches terms and conditions, for example, if the borrower becomes bankrupt.
All borrowers must be a minimum age of 60. There is no maximum age. The plan can be written on a single or joint basis.
The interest rate is fixed at the rate that is current on the day that the initial loan and each subsequent borrowing is released. This means that a different rate may be charged for each release. Interest is calculated on a daily basis and compounded annually.
Norwich Union is a member of Safe Homes Income Plans (SHIP), an organisation that was set up in 1991 to promote safe equity release products. As a member of SHIP, Norwich Union lifetime mortgages have a no-negative equity guarantee built in as standard.
About Norwich Union
Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union is the UK’s largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.
Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media