Halifax to pull retirement home plan

Halifax is to pull its retirement home plan.

The product, which is to be pulled on Wednesday, was marketed as an alternative to equity release and is aimed at those over 65.

Whereas an equity release balance will increase over time, the retirement home plan will stay at the same balance, with only the interest payments having to be met each month.

The maximum amount that can be raised is 75 per cent of the property’s value and the capital is repaid when the house is sold.

Halifax pulled the product from its branches a number of years ago and since then it has only been available through intermediaries.

A Halifax spokeswoman says: “We consistently review our product propositions and criteria to make sure they remain appropriate. The retirement home plan is a niche scheme and therefore only represents a very small proportion of our business. This change ensures alignment across the group.”