Newcastle to shut down equity release proposition
Share
The mutual has confirmed it will be announcing the closure of its advice and provider multi-tie proposition. It will close down its Newcastle Building Society Equity Release Service by the end of the year.
A source told Money Marketing: "Newcastle has handled this very badly. Some of the staff have not been told and some are still on holiday."
The source, who wished to remain anonymous, says all staff dealing with Newcastle's equity release advice business are set to be made redundant.
He says: "It is only a small part of the business, but we have been given numerous promises that we are all safe and the business is in profit, but now we have been told we are being closed down."
Key Retirement Solutions group director Dean Mirfin says: "In this climate there has been a big shift away from direct sales forces and top a degree multi-tie propositions - consumers are worried that the provider may go bust, so they are preferring to get advice."
Newcastle says: "The recent economic turbulence has led to a considerable contraction in the equity release sector which has led to the decision that NBSERS, which provides advice to clients considering taking out equity release, is no longer a viable option at this time. As a result there will be five posts made redundant and consultation has begun with the individuals affected."
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
