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Norwich Union brings big name into reversion

Norwich Union is introduing a home-reversion plan after extensive research into the sector.

The plan will be sold on a fully advised basis through regulated IFAs and mortgage intermediaries and directly to con- sumers through NU’s own financial consultants.

The plan includes an inheritance protection guarantee to protect the value of an estate in the event of death or a long-term care requirement in the plan’s first four years.

A house-price inflation guarantee aims to ensure the customer will benefit from rises in the value of their property. If the price has risen more than 7.5 per cent a year above inflation since the start of the plan on the sale of the property, the excess is shared equally with the customer.

Key Retirement Solutions business development director Dean Mirfin says the reversion market has lacked big names but with NU’s entry other lenders may move in.

NU Personal Finance director Mark Kelly says: “This plan is an important development in the equity-release market as there has not been a major product provider in the reversion market for several years.”

Hill Martin mortgage expert Steve Smith says: “I would be interested to see who is funding it. Is it the NU with-profits fund as it funds its lifetime mortgage lending?”

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