View more on these topics

Equity-release plan rates will reflect mortality risk

Long-term care and retirement annuity specialist PAFS is planning to set up an impaired-life equityrelease product with interest rates and loan to values which vary to reflect the client&#39s mortality risk.

PAFS says the product will benefit clients who face a retirement which is likely to be shortened by ill health and who want to release the value in their homes.

The firm says the product – to be launched in September – will benefit clients taking early retirement through ill health as well as those facing increased care costs because their condition is deteriorating.

PAFS plans to make more competitive interest rates available to impairedlife clients but it expects the biggest advantage to be the size of loan to value it can offer.

It says that conventional equity-release providers would offer 20 to 30 per cent of the property value but, for some impaired-life clients, around 40 to 60 per cent LTV could be available.

General manager Mike Douglas says: “The problem at the moment is that equity-release lenders assume that people have at least 20 years of retirement left when, for many people, this clearly is not the case.

“We plan to offer a product that the IFA will be happy to recommend because it is good value.”


Children&#39s Mutual in admin deal with Capita

The Children&#39s Mutual has picked Capita to administer its existing services portfolio and new child trust fund accounts. It is planning to market its own CTF accounts and to provide products and admin services for other financial services organisations in partnership with Capita. Capita is to invest £2.5m in customising technology to create bespoke admin […]

Venture forth

I am a higher-rate taxpayer who has maximised all the tax-efficient investments that I am aware of. I have previously stayed away from venture capital trusts due to the volatility in the stockmarkets. Should I now consider them as I am willing to adopt a higher risk/reward strategy for part of my portfolio? Venture capital […]

Wesleyan cuts payouts despite 17% fund return

Wesleyan Assurance is reducing payouts despite a return of 17.2 per cent on the with-profits fund in 2003. The company says it has more than four times the risk capital margin needed under the new realistic reporting regime. Conventional life and pension policies will see cuts of 0.25 per cent in the annual bonus on […]

A high price to pay for Bamford&#39s PI insurance

Your journal has now provided Nick Bamford with the opportunity to complain about his treatment at the hands of the wicked Professional Indemnity underwriting market twice in four weeks, yet there is another side to the story. At the eighth hour, I was asked to meet with Nick and his broker with a view to […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm