NU launches Equity Release Cash

Category: Investments
Date: 7/12/2006 2:05:46 PM

Norwich Union has launched its Equity Release Cash Reserve Option, a lifetime mortgage that 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 at a later date. Access to the cash reserve is guaranteed for 10 years and there is no limit to the number of releases a customer can make.

Details of the Equity Release Cash Reserve Option include:

• 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, although the minimum withdrawal is £5,000.
• All borrowers must be at least 60 years old, with the plan available 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, meaning a different rate may be charged for each release.

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.”