Norwich Union is reducing the interest rate on its Equity Release loans with effect from Monday 19 November. The reduction is in line with the recent fall in long term interest rates.
Norwich Union is reducing the interest rate on its Equity Release loans with effect from Monday 19 November. The reduction is in line with the recent fall in long term interest rates.
The new interest rate for Norwich Union’s Flexible Cash Release Plan, which allows customers over the age of 60 to release a proportion of the value of their home in the form of a cash lump sum, is 7.79% (cut from 8.25%).
The rate for the Flexible Income Release Plan, which enables customers over 60 to generate a regular income, falls from 8.4% to 7.94%.
Mark Kelly, director of Norwich Union Personal Finance, said: “Norwich Union’s equity release plans offer customers a loan with the security of a fixed rate of interest for life.
“The most appropriate market benchmark for lending of this type is long term gilt yields, and over recent weeks these have fallen. I’m delighted that we are able to pass this reduction on to our customers in the form of reduced interest rates.”
Any customer who has already applied for a plan, but has not yet received their loan will automatically receive the benefit of the new rate.
For further media information, contact David Ross at Norwich Union Press Office on 08703 666860
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Notes to Editors:
- Norwich Union offers two options for people wanting to release cash from their home. The Flexible Cash Release Plan releases a cash lump sum and the Flexible Income Release Plan enables customers to receive a regular income – or the option to take up to 25 per cent of the money released as a cash lump sum as well as a regular income. Loans are secured by a legal charge on their property.
- Security is required CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN DOUBT SEEK INDEPENDENT ADVICE.
There is nothing to repay during the customers’ lifetime unless the house is sold or they need to go into long term care.
The plans should be seen as a lifetime commitment. Substantial early repayment charges may be payable if the loan is repaid for a reason other than death or long term care needs.
Full terms and conditions or a personal illustration are available on request.
The income under a Flexible Income Release Plan is provided by a Norwich Union Immediate Life Annuity. The annuity has no cash in value at any time. Part of the income received under a FIRP is taxable as savings income.
Entitlement to state/tax benefits may be affected by taking out an equity release plan.
Norwich Union only advises on its own products.
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- An ISDN facility is available for studio quality interviews. Call the press office on 08703 66 68 68
For all life & pensions media enquiries 08703 66 68 73
For all other media enquiries 08703 66 68 68