Recent reports of a property market slowdown will not worry existing or future Norwich Union equity release customers – they have no need to fear falling house prices.
Recent reports of a property market slowdown will not worry existing or future Norwich Union equity release customers – they have no need to fear falling house prices.
As the market leader in equity release, all Norwich Union customers are fully protected against any negative equity trap now and in the future.
Norwich Union’s equity release scheme contains a guarantee that ensures the loan plus accrued interest can never exceed the open market value of their property. So even if house prices fall, Norwich Union’s customers will never be asked to pay back more than their home is worth.
Equity release schemes are very popular, with sales doubling over the past two years. Norwich Union estimates that 90,000 customers are actively considering releasing Ł3.2bn of equity in their homes.
Every year thousands of homeowners over 60 use equity release to free up the capital tied up in their homes through mortgage style schemes. This type of scheme is attractive to many people because there are no monthly repayments and the loan plus the interest is only repaid when the plan ends, usually on death or the need for long term care.
In addition to Norwich Union’s no negative equity guarantee, the amount a homeowner can borrow is restricted to a percentage of the property value depending on their age. This means that there is a considerable equity buffer between the amount of the loan and the value of the property at completion.
Customers have already released over Ł900 million of equity in their homes through Norwich Union’s equity release loan.
Paul Stokes, Head of Marketing for Norwich Union Equity Release, said: “More and more people are looking to the equity in their home to fill gaps in their retirement finances. Whatever happens to property prices, our no negative equity guarantee means that our customers are protected.”
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Notes to editors
- 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 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.
- Norwich Union’s news releases are available on the Aviva plc website at www.aviva.com
- A selection of images are available from the Norwich Union Newscast site at www.newscast.co.uk
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 FAMILYTO 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
Press office contacts:
James Evans - 08703 66 68 78 / 07790 487105
Ian Beggs - 08703 66 68 71 / 07790 487 533
Louise Goffee - 08703 66 68 70 / 0781