Norwich Union is launching a new equity release plan, its Equity Release Cash Reserve Option on 10 July.
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.
The Norwich Union Cash Reserve Option will be available from financial advisers and Norwich Union Personal Finance sales force. 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.
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.
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.
Recent research by the insurer showed that 8 % of customers who take out a Norwich Union Lifetime Mortgage spend the money released from their home on healthcare.
Equity release and lifetime mortgage products are an alternative and flexible way of funding Long Term Care, but they do not guarantee to fully meet any care payment needs.
Equity release plans: News update: July 2006