Prudential is ready to launch its lifetime mortgage product this autumn, focusing on a flexible loan facility allowing customers to draw down more cash the older they get.Addressing concerns raised by the FSA in May, Pru’s Property Value Release Plan restricts customers to drawing down equity in manageable chunks, Money Marketing understands. It is designed to stop the situation where customers release more cash than required, then have to invest the surplus in investment products that potentially return less than the interest charged. Two options will be available. The first allows a maximum loan to value of 15 per cent at age 60, increasing by 1 per cent of the property value every year up to 35 per cent LTV. This increase is guaranteed. The increasing loan facility is based on the original property price, so there is no need for revaluation or a new application. The second option is to borrow a fixed sum dependent on age, starting at 20 per cent LTV at 60, rising to a maximum of 35 per cent at 75. The customer can draw down money at any time throughout their retirement. The fixed pay rate will be confirmed closer to launch. MM revealed in May that Pru was intending to sever its relationship with Northern Rock and launch into equity release on its own. The product is being introduced under the guidance of director of lifetime mortgages Ali Crossley. A spokesman says: “Details are being sent out to intermediaries and brokers. We cannot confirm details until later in the year when the product is launched.”
Iimia has appointed Nicholas Hamilton to its board as an independent non-executive director.Iimia chairman William Long says the appointment is the result of the need for an additional non-executive director following the merger of Exeter and Iimia.
Endowment mortgage claims management companies are to be regulated in the upcoming Compensation Bill although it is unclear which body will take responsibility. The Department for Constitutional Affairs says it has made provision to legislate later this year in a Bill intended to tackle the compensation culture but it will not speculate as to whether […]
In my consideration of the two main trust types to choose from for receiving nil-rate band transfers, I looked last week at the main tax implications of the flexible interest in possession trust. This week it is the turn of the discretionary trust.
The benchmark qualifica- tion for all UK financial advisers is the Certificate in Financial Planning, which is offered by the Chartered Insurance Institute.
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